IN THE HIGH COURT OF KARNATAKA AT BENGALURU
H.P. SANDESH, J.
M/s. Associated Constructions, Represented by its Managing Partner Sri K. Munikrishna - Petitioner
Versus
The Executive Engineer, Karnataka Housing Board, Bellary & Ors. - Respondents
Civil Revision Petition No.29 of 2022 (IO) c/w Civil Revision Petition No.33 of 2022 (IO)
Decided On : 23-05-2023
Code of Civil Procedure, 1908 - Section 115, Order 7 Rule 11 - Arbitration and Conciliation Act, 1996 - Section 34, (3), 31(5), 33(4), (1) - Arbitral award - Reject arbitration suit - Applications filed by revision petitioner before Court invoking provisions under Section Order 7 Rule 11 of CPC, wherein prayed Court to reject arbitration suit – When arbitration suit was filed before Court, office objection was raised with regard to limitation is concerned - Para 13.
Finding of the Court:
When arbitration suit was filed before Court, office objection was raised with regard to limitation is concerned - Court considered office objection and passed order, wherein comes to definite conclusion having considered averments made in plaint that it is specifically stated that it was received by plaintiff and same is within limitation period - Even on appearance also, when Court has given definite finding that suit is not barred by limitation and same is filed within period of three months from date of receipt of arbitral award, same ought to have been challenged and instead of challenging said order, an application is filed under Order 7 Rule 11 of CPC and while dismissing application, Trial Court comes to conclusion that Court cannot sit and again consider same issue by entertaining application under Order 7 Rule 11 of CPC and said observation is made in paragraph No.10 of order - Hence, Court do not find any error committed by Trial Court in rejecting application filed under Order 7 Rule 11 of CPC.
Result: Petitions dismissed.
ORDER :
These two civil revision petitions are filed before this Court under Section 115 of CPC challenging the order passed by the LXIX Additional City Civil and Sessions Judge (Commercial Court, CCH-89), Bangalore in A.S.Nos.12/2017 and 13/2017, dismissing the applications filed by the revision petitioner before the Court invoking the provisions under Section Order 7 Rule 11 of CPC, wherein prayed the Court to reject the arbitration suit filed under Section 34 of the Arbitration and Conciliation Act, 1996 (‘the said Act’ for short). In support of the application, one of the partner of the defendant in the said suit filed an affidavit stating that an agreement was entered into between the KHB through the plaintiff and the defendant herein on 23.03.1992 for the construction of the houses and when the dispute was arisen between the parties, the matter was referred to the arbitrator. The arbitrator having considered the material available on record, passed the award directing the defendants to pay the arbitral award amount. Being aggrieved by the said arbitral award, a suit is filed by respondent No.1 herein before the Court questioning the very award passed by the arbitrator. The defendant before the arbitration suit filed an application contending that the very suit is filed beyond the limitation period and the period allowed under Section 34(3) of the Act is only for a period of three months and on satisfaction, further one month period can be condoned. But in the case on hand, it is contended that the arbitration award was passed on 01.01.2014 and the same was communicated and in pursuance of the communication, a letter was also written to the State Government for satisfaction of the arbitration award. Even an execution petition was filed and in the execution petition also appeared and filed the statement of objections and even if taken the date of appearance before the executing Court and also filing of the objection statement, the suit is hopelessly barred by limitation.
2. The learned counsel for the petitioner would vehemently contend that the very contention of the respondent before the suit filed in A.S.No.12/2017 and 13/2017 is that the arbitration award is served on 03.10.2016 and the suit is within time cannot be accepted. The Trial Court while considering the application filed under Order 7 Rule 11 of CPC ignored the same and comes to the conclusion that service is on 03.10.2016 considering the averments made in the plaint and hence the very approach of the Trial Court is erroneous and hence it requires interference of this Court.
3. Per contra, the learned counsel for respondent No.1 would contend that under Section 31(5) of the Act, it is very clear that arbitration award shall be made in writing and shall be signed by the members of the Arbitration Tribunal and sub-Section (5) is clear that after the arbitral award is made, a signed copy shall be delivered to each party. The learned counsel submits that the party before the arbitrator is the Executing Engineer, who entrusted the work to the petitioner herein and no copy is delivered to the Executing Engineer and merely copy is sent to the Chief Engineer cannot be a proper service. The learned counsel submits that while entertaining the application under Order 7 Rule 11 of CPC, the Court has to consider the averments of the plaint and not the defence of the petitioner herein and only considering the averments made in the plaint, the Court can invoke Order 7 Rule 11 of CPC.
4. The learned counsel in support of his argument relied upon the judgment of the Apex Court in the case of C. NATRAJAN v. ASHIM BAI AND ANOTHER reported in (2007) 14 SCC 183 and brought to the notice of this Court paragraph No.8 of the judgment, wherein it is observed that an application for rejection of the plaint can be filed if the allegations made in the plaint even if given face value and taken to be correct in their entirety appear to be barred by any law. The question as to whether a suit i
C. Natrajan v. Ashim Bai and Another
State of Maharashtra and Others v. ARK Builders Private Limited
SupremeToday
Provision under Section 31(5) of Act is clear that after arbitral award is made, a signed copy shall be delivered to each party.
Effective service of an arbitral award must be made directly to the parties involved; service on an employee does not suffice to commence the limitation period.
An application for arbitration is barred by limitation if filed beyond the three-year period stipulated, starting from the date the cause of action arose as determined by prior communications.
Limitation period for challenging an arbitral award under Section 34 of the Arbitration Act commences from the date of receipt of the signed award, as mandated by Section 31(5), and cannot be extende....
Scanned signed copy of the award/order of the Arbitral Tribunal to the parties would be a valid delivery as envisaged under Section 31(5) of the Arbitration and Conciliation Act, 1996.
The delivery of the signed copy of the arbitral award to the party is a crucial stage in the arbitral proceedings, and the limitation period for filing objections commences only from the date of such....
The limitation period for setting aside an arbitral award starts from the disposal of a request under Section 33, excluding the time taken for communication of that decision.
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