Limitation period for challenging an arbitral award under Section 34 of the Arbitration Act commences from the date of receipt of the signed award, as mandated by Section 31(5), and cannot be extended beyond the prescribed time.

JUDGMENT :

SUNITA AGARWAL, C.J.

1. This is an appeal filed under Section 37 of the Arbitration and Conciliation Act’ 1996 (for short, “the Arbitration Act’ 1996” or “the Act’ 1996”).

2. Having heard the learned counsel for the appellant and perused the record, it is noteworthy that the appellant herein was party to the arbitral award rendered on 07.10.2021 in Arbitration Claim Petition No.2 of 2021. A perusal of the arbitral award indicates that the liability, jointly and severally for the outstanding loan was fixed upon the appellant as well as other opposite party, who happens to be the brothers of the appellant on the claim petition filed by the respondent – bank.

3. The application under Section-34 of the Arbitration and Conciliation Act’ 1996 has been filed on 20.01.2026 by the appellant herein, to challenge the award dated 07.01.2021, which was dismissed with the reasoning as follows:-

“4. After going through the submission made by Learned Advocate for the applicant, it is clearly stated that the applicant for the first time, came to know from the proceedings of Commercial Execution Petition No.426 of 2023 arising out of the impugned Award, that there is Award against her. At this juncture, the proceedings of Commercial Execution Petition No.426 of 2023 is very much important and which is fortunately pending before this Court, wherein various efforts to serve the process of execution proceedings upon including the present applicant came to be initiated and ultimately, the then Hon’ble Court allowed the application, by which, the process of execution petition came to be affixed on the conspicuous part of the residence. As the execution proceedings ultimately arising out of the main Award, which is challenged by the present applicant, the proceedings in execution petition qua the present applicant certainly can be considered.

Now, on perusing Exh.9 of Commercial Execution Petition No.426 of 2023, which was notice and the same was affixed at the residence of the present applicant, at which, the construction was goin on and thus, it is amply clear by way of affixing service of process took effected on 23.5.2024. The matter does not rest here. Other application by the Award Holder bank came to be filed under Order XXI, Rule 54 of the Code of Civil Procedure, 1908 (‘the code’ for short) and in the same manner, that notice was also came to be affixed on dated 14.10.2025. Thus, that means, two – two times notices of execution proceedings of the year 2023 came to be served as per Order V, Rule 20(1-A) of the Code upon the applicant on dated 13.5.2024 and 14.10.2025, respectively. Though on the basis of e-mail dated 12.12.2025, the applicant is taking recourse that she came to know from the execution proceedings very recently, which is an attempt to bring the present application within the circle of limitation.

5. Therefore, it clearly reveals that whatever the proceedings have been commenced in execution proceedings to save skin from the same or to derail the execution proceedings which supposed to be, the present application is filed and thereby challenge is made qua the Award which passed in the year 2021. Furthermore, the applicant has wisely taken the shelter to bring her application within the circle of limitation, which otherwise, prohibited as per mandatory provisions of section 34(2) of the A&C Act.”

4. The learned Court under Section-34 of the Arbitration and Conciliation Act’ 1996 [in short as “the Act’ 1996”] has rejected the application on the ground of being beyond limitation prescribed under Section-34(3) of the Act’ 1996. Challenging the order passed by the Court under Section-34, it was argued by the learned counsel for the appellant that the signed copy of the award was never served upon the appellant though the appellant herein was party to the arbitration proceedings. The appellant came to know about the award only on the issuance of process / notices in the Commercial Execution Petition No.426 of 2023.

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