IN THE HIGH COURT OF BOMBAY
Anoop V. Mohta, J.
AMIT SURYAKANT LUNAVAT - Petitioner
vs.
KOTAK SECURITIES, MUMBAI - Respondent
Arbitration Petition No. 1018 of 2009
Decided on: 27-9-2010.
Arbitration - Challenge to Arbitral Award - Arbitration and Conciliation Act, 1996, Section 34 - Section 33(1)(a), 33(1)(b), 33(4), 33(6), 33(7), 34(3) - The court discussed the provisions of section 33 and 34 of the Arbitration and Conciliation Act, 1996, highlighting the requirements for correction, interpretation, and additional arbitral awards, as well as the limitation period for setting aside an arbitral award. The court emphasized the mandatory nature of the timelines for making requests and passing orders under section 33, and the impact of such actions on the limitation period for challenging the award.
Fact of the Case:
The petitioner challenged an arbitral award dated 16th May, 2009, received on 1st June, 2009, by filing a petition under section 34 of the Arbitration and Conciliation Act, 1996. The petitioner had previously filed an application under section 33 of the Act, which was rejected by the Arbitrator on 1st July, 2009.
Finding of the Court:
The court found that the petition was filed beyond the limitation period prescribed under section 34(3) of the Act, and therefore dismissed the petition on the ground of limitation.
Issues: The main issue was whether the petition under section 34 of the Act was filed within the prescribed limitation period, considering the previous application filed under section 33 and its rejection by the Arbitrator.
Ratio Decidendi: The court held that the limitation period for challenging an arbitral award does not start afresh from the date of disposing of the application under section 33, unless there is a correction, interpretation, or addition in the arbitral award. The court emphasized the strict adherence to the limitation period prescribed under section 34(3) of the Act.
Final Decision: The petition under section 34 of the Arbitration Act was dismissed on the ground of limitation.
2. The petitioner has moved this Petition under section 34 of the Arbitration and Conciliation Act. 1996, (for short, the Act) thereby challenge is lade to the award dated 16th May, 2009 which according to the petitioner received on 1st June, 2009. Admittedly, the petitioner has moved an Application under section 33 of the Act, on 19th June, 2009, and various grounds were raised referring to limitation and the merit also and prayed to reconsider all the points. The respondent though served, not appeared before the Tribunal.
3. By order dated 1st July, 2009, the Arbitrator, observed that; there are no typographical or clerical errors or errors of similar nature in the award; the application, as filed, does not come within any of the criteria falling under section 3; it amounts to review of the award; rejected the application on all grounds.
4. The petitioner moved/ lodged this petition under section 34 of the Act, 17-10-2009.
5. The relevant section 33 is reproduced as under:
"33. Correction and interpretation of award; additional award. -- (1) Within thirty days from the receipt of the arbitral award, unless another period of time has been agreed upon by the parties –
a) a party, with notice to the other party, may request the arbitral tribunal to correct any computation errors, any clerical or typographical errors or any other errors of a similar nature occurring in the award;
b) if so agreed by the parties, a party, with notice to the other party, may request the arbitral tribunal to give an interpretation of a specific point or part of the award.
(2) If the arbitral tribunal considers the request made under sub-section (1) to be justified, it shall make the correction or give the interpretation within thirty days from the receipt of the request and the interpretation shall form part of the arbitral award.
(3) The arbitral tribunal may correct any error of the type referred to in clause (a) of sub-section (1), on its own initiative, within thirty days from the date of the arbitral award.
(4) Unless otherwise agreed by the parties, a party with notice to the other party, may request, within thirty days from the receipt of the arbitral award, the arbitral tribunal to make an additional arbitral award as to claims presented in the arbitral proceedings but omitted from the arbitral award.
(5) If the arbitral tribunal considers the request made under sub-section (4) to be justified, it shall make the additional arbitral award within sixty days from the receipt of such request.
(6) The arbitral tribunal may extend, if necessary, the period of time within which it shall make a correction, give an interpretation or make an additional arbitral award under sub-section (2) or sub-section (5).
(7) section 31 shall apply to a correction or interpretation of the arbitral award or to an additional arbitral award made under this section."
6. Section 34 sub-clause (3) is also reproduced as under:
"(1) ....
(2) ....
(3) An application for setting aside may not be made after three months have elapsed from the date on which the party making that application had received the arbitral award or, if a request had been made under section 33, from the date on which that request had been disposed of by the arbitral tribunal :
Provided that if the Court is satisfied that the applicant was prevented by sufficient cause from making the application within the said period of three months it may entertain the application within a further period of thirty days, but not thereafter.
(4) ....."
7. As per the scheme of the Act and these two sections, it is permissible for the parties to apply for correction and/or interpretation and/or for addition in the award within 30 days from the receipt of the award. The petitioner did apply accordingly. As per clause (a) of section 33(1) of the Act with notice to the other party, a party can request the arbitral tribunal to correct any computation errors or any clerical or any typographical errors or an
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