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IN THE HIGH COURT OF DELHI AT NEW DELHI
HARISH VAIDYANATHAN SHANKAR
Employees State Insurance Corporation – Appellant
Versus
Mukesh Associates – Respondent
JUDGMENT :
HARISH VAIDYANATHAN SHANKAR, J.
1. The present petition filed under Section 34 of theArbitration and Conciliation Act, 1996 , [A&C Act], read with Section 151 of theCode of Civil Procedure, 1908 , [CPC], challenges theArbitral Award dated 02.06.2023 , [Arbitral Award] passed by the learned Sole Arbitrator in Case Ref. No. DAC/897/03-15.
2. Before adverting to the merits of the challenge laid under Section 34 of the A&C Act, this Court deems it appropriate to first examine the aspect of condonation of delay and the plea of non-est filing raised in the present proceedings. The determination of these preliminary issues goes to the very root of the matter and would decide whether the present petition survives for consideration on merits.
3. Before proceeding further, it would be apposite to briefly set out the necessary and undisputed facts, insofar as they are relevant for the adjudication of the preliminary issue concerning limitation, which are delineated hereunder:
(i) The Petitioner is a statutory corporation constituted under the Employees’ State Insurance Act, 1948. The Respondent is a partnership firm engaged in architectural and engineering consultancy services. The
The court ruled that statutory timelines under the Arbitration and Conciliation Act are strict and failure to properly file within these limits results in dismissal as barred by limitation.
An application to set aside an arbitral award must adhere strictly to procedural requirements, failing which it may be deemed non-est, thereby barring the challenge by limitation.
Scanned signed copy of the award/order of the Arbitral Tribunal to the parties would be a valid delivery as envisaged under Section 31(5) of the Arbitration and Conciliation Act, 1996.
The failure to file essential documents alongside a Section 34 application renders the filing 'non-est', thus failing to stop the limitation period, leading to dismissal of the petition.
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.
The limitation period for challenging an arbitral award commences upon receipt of a signed order, not an unsigned draft, emphasizing strict adherence to statutory timelines.
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