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DELHI HIGH COURT
PRATHIBA M.SINGH
Directorate of Health Services – Appellant
Versus
Sarvesh House Keeping Services Pvt. Ltd. – Respondent
JUDGMENT
Prathiba M. Singh, J. (Oral)
1. This hearing has been done through video conferencing.
2. The present petition challenges the impugned order dated 22nd January, 2021 by which the petition under Section 34 of the Arbitration and Conciliation Act, 1996, filed by the Petitioner-Department, has been dismissed as being barred by limitation.
3. A tender bearing No. 2013-DHS-44853 was floated by the Petitioner on 13th September, 2013 for housekeeping services. The Respondent had participated in the said tender and was awarded the contract on 23rd May, 2014. The detailed agreement was executed between the parties on 21st May, 2014. The payment had to be made for the period commencing from 1st June, 2014 to 31st May, 2016 @ Rs.51,418.50/- per month plus service tax.
4. Disputes arose between the parties. It is the case of the Respondent that there was a delay in making payments and various other claims were also raised. The sole arbitrator appointed in the matter passed the arbitral award on 25th January, 2019. The operative portion of the said award reads as under:
"CONCLUSION:
1. Claimant is awarded a sum of Rs.8.49362.72p along with interest at the rate of 12% per annum
The limitation period for filing a petition to set aside an arbitral award under Section 34 is mandatory and cannot be extended beyond the prescribed time, even for reasons of administrative difficul....
Point of Law : Arbitration and Conciliation - Arbitral Award - Challenged - Section 34 provides that recourse to a court against an arbitral award may be made only by an application for setting aside....
The court's decision was influenced by the interpretation of the period of limitation under Section 34 of the Arbitration & Conciliation Act, 1996, as established by the judgment of the Supreme Court....
The court emphasized the absolute nature of the time limit prescribed under Section 34(3) of the Arbitration and Conciliation Act, 1996, highlighting the legislative intent to minimize the supervisor....
The main legal point established in the judgment is that the limitation period for challenging an award under Section 34(3) of the Arbitration and Conciliation Act is strict and cannot be extended be....
The Court emphasized the importance of due diligence and dispatch in exercising the right to challenge an Arbitral Award within the prescribed time, as per the provisions of the Arbitration Act.
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