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IN THE HIGH COURT OF DELHI AT NEW DELHI
VALMIKI J.MEHTA, J.
NATIONAL HIGHWAY AUTHORITY OF INDIA - Petitioner
Versus
M/S. PRAKASH ATLANTA JV - Respondent
O.M.P. No.186/2015
Decided On : 07.08.2015
Section 34 - Arbitration & Conciliation Act, 1996 - 31, 33, 34 - The court discussed the provisions of Sections 31, 33, and 34 of the Arbitration & Conciliation Act, 1996, focusing on the commencement of the limitation period for filing objections under Section 34 from the date of receiving the corrected/amended award. The court emphasized the need for a literal interpretation of Section 34(3) and highlighted the absurdity that would result from a literal interpretation of the provision.
Fact of the Case:
The issue raised was whether the objection petition under Section 34 of the Arbitration & Conciliation Act, 1996 was filed beyond the period of limitation prescribed under Section 34(3) of the Act.
Finding of the Court:
The court rejected the argument that the petition under Section 34 of the Act was time-barred, emphasizing the need for a literal interpretation of Section 34(3) and highlighting the absurdity that would result from a literal interpretation of the provision.
Issues: The main issue was the commencement of the limitation period for filing objections under Section 34 from the date of receiving the corrected/amended award.
Ratio Decidendi: The court emphasized the need for a literal interpretation of Section 34(3) and highlighted the absurdity that would result from a literal interpretation of the provision.
Final Decision: The court rejected the argument that the petition under Section 34 of the Act was time-barred.
VALMIKI J. MEHTA, J.
1. A legal issue has been raised on behalf of the respondent in this case that the objection petition under Section 34 of the Arbitration & Conciliation Act, 1996 (hereinafter referred to as ‘the Act’) is filed beyond the period of limitation prescribed under Section 34(3) of the Act, and that therefore the objections are liable to be dismissed in limine in view of the judgment of the Supreme Court in the case of Union of India Vs. Popular Construction Co. (2001) 8 SCC 470.
2. In the present case, the issue is not an issue limited to deciding the commencement of period of limitation for filing objections under Section 34 of the Act from the date of filing of the Award, inasmuch as in the present case admittedly after passing of the original Award on 5.8.2014, both the parties thereafter had filed applications under Section 33 of the Act for correction of the Award. These applications were disposed of by the Arbitral Tribunal vide its Order dated 13.9.2014. By this Order dated 13.9.2014 the application of the objector for correction was dismissed and the application of the respondent for correction was allowed whereby the amount awarded to the respondent has been enhanced to a sum of Rs.9 crores.
3. The copy of the amended Award pursuant to the amendments made by the Arbitral Tribunal vide its Order dated 13.9.2014, was received by the objector on 7.11.2014. If the limitation period under Section 34(3) of the Act is considered to start on this date of 7.11.2014 then the objections filed would be within limitation inasmuch as objections were filed on 4.2.2015.
4. In order to appreciate the issue as to whether limitation starts from the date of the order passed under Section 33 of the Act or from the date of receiving the copy of the corrected/amended award, it will be necessary to set forth herein at the outset the provisions of Sections 31, 33 and 34 of the Act in their entirety and the same read as under:-
“31. Form and contents of arbitral award.-
(1) An arbitral award shall be made in writing and shall be signed by the members of the arbitral tribunal.
(2) For the purposes of sub-section (1), in arbitral proceedings with more than one arbitrator, the signatures of the majority of all the members of the arbitral tribunal shall be sufficient so long as the reason for any omitted signature is stated.
(3) The arbitral award shall state the reasons upon which it is based, unless—
(a) the parties have agreed that no reasons are to be given, or
(b) the award is an arbitral award on agreed terms under section 30.
(4) The arbitral award shall state its date and the place of arbitration as determined in accordance with section 20 and the award shall be deemed to have been made at that place.
(5) After the arbitral award is made, a signed copy shall be delivered to each party.
(6) The arbitral tribunal may, at any time during the arbitral proceedings, make an interim arbitral award on any matter with respect to which it may make a final arbitral award.
(7) (a) Unless otherwise agreed by the parties, where and in so far as an arbitral award is for the payment of money, the arbitral tribunal may include in the sum for which the award is made interest, at such rate as it deems reasonable, on the whole or any part of the money, for the whole or any part of the period between the date on which the cause of action arose and the date on which the award is made.
(b) A sum directed to be paid by an arbitral award shall, unless the award otherwise directs, carry interest at the rate of eighteen per centum per annum from the date of the award to the date of payment.
(8) Unless otherwise agreed by the parties,-
(a) the costs of an arbitration shall be fixed by the arbitral tribunal;
(b) the arbitral tribunal shall specify--
(i) the party entitled to costs,
(ii) the party who shall pay the costs,
(iii) the amount of costs or method of determining that amount, and
(iv) the manner in which the costs shall be paid.
Explanation,- For the purpos
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