IN THE HIGH COURT OF JUDICATURE AT PATNA
RAJEEV RANJAN PRASAD and SHAILENDRA SINGH, JJ.
Commercial Appeal No. 12 of 2024
(6.1.2026)
Union of India ... Appellant
vs.
M/s Mahnar Infratech Pvt. Ltd. ... Respondent
Arbitration and Conciliation Act, 1996 – Sections 33 and 34 (1) – Setting aside arbitral award – Dismissal of application solely based on the ground of limitation – Application for carrying out any correction in award is required to be filed within 30 days from date of receipt of arbitral award, unless another period of time has been agreed upon by parties – Whether application under Section 33 of Act of 1996 is allowed or dismissed is not the determinative factor – What is determinative is date on which said application stood disposed of – Section 34(3) of Act of 1996 specifically excludes provisions of Limitation Act in the matter of condonation of delay – Application under Section 33 of Act of 1996 was beyond period mentioned under said section – Appeal dismissed. (Paras 14, 16, 22, 27 and 28)
Rajeev Ranjan Prasad, J.—Heard Mr. Alok Kumar Agrawal, learned counsel for the appellant and Mr. Manish Sahay, learned counsel for the claimant-respondent.
2. The present appeal has been preferred for setting aside the order dated 04.07.2024 passed by learned District Judge, Saran at Chapra (hereinafter ‘the learned court’) in Miscellaneous Arbitration Case No. 05 of 2022 (hereinafter referred to as the ‘impugned order’).
3. By the impugned order, the learned court has been pleased to reject the application preferred by the appellant under Section 34 (1) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the ‘Act of 1996’ or ‘1996 Act’) challenging the part of the arbitral award dated 12.05.2022 and additional award dated 08.08.2022. The dismissal of the application is solely based on the ground of limitation.
4. The learned court took a view that as per Section 34 (3) of the Act of 1996, the maximum period of limitation for filing an application for setting aside an award is three months, delay may be condoned only for a period of 30 days, but not thereafter. The learned court found that the arbitral award was passed on 12.05.2022 but the application for setting aside the award was filed on 05.11.2022 i.e. after more than 160 days of the passing of the award.
5. On perusal of the records, it is found that the plea of the appellant before the learned court that the appellant had filed an application under Section 33 of the Act of 1996 on 01.08.2022 before the learned Arbitral Tribunal which came to be disposed of on 08.08.2022, therefore, the limitation may start running only from 08.08.2022, has been rejected by the learned court.
Submissions on behalf of the appellant
6. Mr. Alok Kumar Agrawal, learned counsel for the appellant has assailed the impugned order on the ground that the learned court could not appreciate the scheme of Sections 33 and 34 of the Act of 1996. According to him, in this case, the award was passed on 12.05.2022 but it was delivered on 24.05.2022, therefore, at first instance, the period of limitation of three months as prescribed under proviso to sub-section (3) of Section 34 of the Act of 1996 would start running from the date of delivery/receipt of the award and not from the date of passing of the award.
7. It is his further contention that after the arbitral award was received by the appellant, the appellant was advised to file an application under Section 33 of the Act of 1996 for carrying out certain corrections. This application was filed on 01.08.2022 which came to be disposed of only on 08.08.2022. Referring to the provision of Section 33 of the Act of 1996, Mr. Agrawal, learned counsel would submit that the date of disposal of the application under Section 33 being 08.08.2022, the period of limitation may be reckoned with only with effect from the said date and not before that. If the limitation is counted from 08.08.2022, the application under Section 34 (1) of the Act of 1996 would come within the period of three months and in such circumstance, there would be no reason to dismiss the application on the ground of the same being barred by limitation. Learned counsel relies upon a judgment of the Hon’ble Supreme Court in the case of North Delhi Municipal Corporation vs. S.A. Builders Ltd. reported in AIR 2024 SC (Supp) 486.
Submissions on behalf of the respondent
8. Mr. Manish Sahay, learned counsel for the claimant-respondent has put a strong contest to the submissions of learned counsel for the appellant. It is submitted that a bare perusal of Section 33 of the Act of 1996 would show that there is a period of limitation fixed for filing of an application by a party before the learned Arbitral Tribunal requesting the Tribunal to correct any computation errors, any clerical or typographical errors or any other errors of similar nature occurring in the award. Sub-section (1) of Section 33 provides that such application should be filed within a period of 30 days from the receipt of
The limitation period for setting aside an arbitral award under the Arbitration and Conciliation Act begins from the disposal date of a correction application and not from the award's date, affirming....
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.
The interpretation of 'three months' in Section 34(3) of the Arbitration and Conciliation Act, 1996, is clarified to mean three calendar months, not strictly 90 days.
Arbitral Award – Limitation – S. 34(3) specifically states that an application for setting aside may not be made after three months have lapsed from date of which party making an application had rece....
Point of Law : Even if the period of delay is considered to be of 21 days. Since Section 34(3) of the Act, 1996 bars condonation of delay beyond the period of 30 days after the period of 3 months is ....
Applications under Section 34 of the Arbitration and Conciliation Act cannot be filed beyond the specified period, emphasizing judicial minimalism in arbitration proceedings.
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