IMPORTANT POINT
The limitation period for challenging an arbitral award under Section 34(3) of the Arbitration and Conciliation Act, 1996, commences from the date a signed copy of the award is received by the aggrieved party.

JUDGMENT :

Shree Chandrashekhar, A.C.J.

Aggrieved by the decision of the Commercial Court at Dhanbad in Arbitration Case No.1 of 2016, Aviva Life Insurance Company India Limited (in short, Insurance Company) has filed this Commercial Appeal under section 13(1-A) of the Commercial Courts Act, 2015.

2. The Arbitration Case No.1 of 2016 has been dismissed on the ground that a challenge to the arbitral Award cannot be laid beyond the period of limitation under section 34(3) of the Arbitration and Conciliation Act, 1996 (in short, AC Act).

3. The Presiding Officer of the Commercial Court has held as under :

“7. Coming to the issue of Limitation, I find that the award was published on 24/03/2014 which was challenged by the petitioners before this Court on 18.01.2016. Meaning thereby this case was filed beyond the period of limitation as prescribed U/s 34 (3) of the Arbitration and Conciliation Act.

A plain reading of Sub-section (3) along with proviso to the Section 34 of the 1996 Act, shows that the application for setting aside the award on the grounds mentioned in sub-section (2) of Section 34 could be made within three months and the period can only be extended for a further period of thirty days on showing sufficient cause and not thereafter. The use of the words "but not thereafter" in the proviso makes it clear that the extension cannot be beyond thirty days and I find that the sole objection of the Claimant at this stage is that the present case is barred by Limitation as contemplated U/s 34 (3) of the Arbitration and Conciliation Act and thus case is not maintainable.

8. From the perusal of the case record it appears that the award was passed by the sole arbitrator Sri Devi Sharan Sinha on 24.03.2014, which was challenged by the petitioners before this Court on 18.01.2016 after 659 days and the petitioners have admitted in para 7 of their plaint as "it is pertinent to mention here that prior to 21.01.2015, the petitioners were not aware of passing of any award dated 24.03.2014 passed by the Sole Arbitrator as no notice of making the award was ever served on the petitioners at any point of time" which shows that the said award had been come in the knowledge of the petitioners on 21.01.2015 and the said award was challenged before the court on 18.01.2016 after 362 days which is beyond the period of limitation as prescribed U/s 34 (3) of the Arbitration and Conciliation Act.

9. The Hon'ble Apex Court in Simplex Infrastructure Ltd. Vs. Union of India, reported in (2019) 2 SCC 455 has held that the period of limitation prescribed for preferring a petition to set aside an award U/s 34 of the Arbitration and Conciliation Act cannot be extended and if extended it will amount to breach of clear statutory mandate.

10. In view of the aforesaid facts and circumstances of the case and the discussions made in the foregoing paragraphs and considering the judicial pronouncement of the Hon'ble Apex Court, I find that the present case filed by the petitioner under Section 34 of the Arbitration and Conciliation Act is barred by limitation and not maintainable and therefore it is fit to be dismissed. Accordingly, the petition is dismissed being barred by Limitation as prescribed U/s 34 (3) of the Arbitration and Conciliation Act. O/c is directed to consign the record in the record room as per Rules.”

4. This Commercial Appeal is premised on the ground that the limitation of three months shall start from the date a signed copy of the arbitral Award was delivered to the Insurance Company. Mr. Bharat Kumar, the learned counsel for the Insurance Company refers to sub-section (3) to section 34 of the AC Act to submit that the arbitral Award was never served upon the Insurance Company and while so, the petition under section 34 could not have been dismissed on the ground of limitation. The learned counsel further submits that an arbitral Award shall also