PATNA HIGH COURT
R.K.Choudhary and K.B.N.Singh JJ.
Mohammad Hasan
Versus
Mohammad Anwar Ahmad
Civil Revision No. 1413 of 1965 ;
Decided On : JANUARY 28, 1967
ARBITRATION - Filing of Award - Limitation - Article 119 (a) of the Limitation Act - Applicability - Filing of Award by Arbitrator - Whether barred by limitation.
Fact of the Case:
An arbitrator filed an award in court more than 90 days after the date of service of the notice of the making of the award. The court held that the filing of the award was barred by limitation under Article 119 (a) of the Limitation Act.
Finding of the Court:
The court held that Article 119 (a) of the Limitation Act does not apply to the filing of an award by an arbitrator. The period of limitation prescribed under Article 119 (a) is only for making an application in court for the filing of the award, and not for the filing of the award itself.
Issues: Whether Article 119 (a) of the Limitation Act applies to the filing of an award by an arbitrator.
Ratio Decidendi: The court interpreted Article 119 (a) of the Limitation Act strictly and held that it applies only to applications made by parties to a reference, and not to the filing of the award by the arbitrator. The court reasoned that the language of the article is clear and unambiguous, and that there is no ambiguity that would justify applying the principle of implication to extend the application of the article to the filing of an award by an arbitrator.
Final Decision: The court allowed the application, set aside the judgment and order of the court below dismissing the miscellaneous case on the ground of limitation, and held that the filing of the award by the arbitrator was not barred by time.
R.K.Choudhary, J.
1. This civil revision application is directed against an order of the Subordinate Judge of Darbhanga, dated the 23rd September, 1965, holding that the filing of the award by the arbitrator was beyond time and the case was, therefore, barred by limitation.
2. It appears that certain disputes between the parties were decided by arbitration without the intervention of the Court, and the arbitrator gave his award on the 16th June, 1963. It was registered on the 11th July, 1963, and the notice of the making of the award was given to the parties on the 12th July, 1963. The award, however, was filed by the arbitrator in Court on the 22nd April, 1965 and a miscellaneous case, No. 41 of 1965, was started. Opposite party No. 3 of the Court below raised a point that, the award having been filed after the expiry of the period of limitation, it could not be made a rule of the Court as being barred by limitation. It was contended on his behalf that the question of limitation should be decided as a preliminary point; and the learned Subordinate Judge, reviving on a decision of this Court in Rambilas Mahto V/s. Durga Bijai Prasad Singh AIR 1965 Pat 239, held that the award was filed beyond the time prescribed by the Limitation Act, and dismissed the miscellaneous case. Hence the present revision application has been filed in this Court on behalf of opposite party Nos. 1 and 2 of the Court below.
3. Counsel for the petitioners has advanced an argument that no limitation is prescribed for the filing of an award in Court by an arbitrator and the decision on which the learned Subordinate Judge relied is of no authority, inasmuch as the question at issue in the present case did not directly arise to be considered in that case, and the view expressed in that case on that point is merely obiter dictum. According to the aforesaid decision of this Court, the filing of award by the arbitrator has been held to be barred under Article 178 of the old Limitation Act. Article 178, after the new amendment, is Article 119 of the Act. Article 178 stated that, under the Arbitration Act. 1940, for the filing in Court of an award the period of limitation is 90 days from the date of service of the notice of the making of the award. The new Article 119 (a) of the Act lays down exactly a similar provision, except that the period of limitation is 30 days instead of 90 days. It states that, under the Arbitration Act, 1940 (10 of 1940), for the filing in Court of an award the period of limitation is 30 days from the date of service of the notice ol the making of the award.
4. Sub-section (1) of Sec.14 of the Arbitration Act lays down that, when the arbitrators or umpire have made their award, they shall sign it and shall give notice in writing to the parties of the making and signing thereof and of the amount of fees and charges payable in respect of the arbitration and award. Sub-section (2) of this section states that the arbitrators or umpire shall, at the request of any party to the arbitration agreement or any person claiming under such party or if so directed by the Court and upon payment of the fees and charges due in respect of the arbitration and award and of the costs and charges of filing the award, cause the award or a signed copy of it, together with any depositions and documents which may have been taken and proved before them, to be filed in Court, and the Court shall thereupon give notice to the parties of the filing of the award. According to the above provisions, the procedure that has to be adopted by the arbitrators or umpire, after making the award, is as follows : -
(a) the arbitrators or umpire shall sign it;
(b) they shall give notice in writing to the parties of the making and signing of the award and of the amount of fees and charges payable in respect of the arbitration and award;
(c) they shall, at the request of any party to the arbitration agreement, or any person claiming under such party, cause the award or a s
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