The limitation period for challenging an arbitral award under Section 34 starts from the disposal of a Section 33 application, not from the receipt of the award.

JUDGMENT :

SANJEEB K. PANIGRAHI, J.

1. The present Writ Petition arises out of an order dated 04.07.2025 passed by the learned Civil Judge, Senior Division, Commercial Court, Rourkela in ARBP No.03/31 of 2024-2025, whereby an application filed under Section 34 of the Arbitration and Conciliation Act, 1996 was dismissed.

I. FACTUAL MATRIX OF THE CASE

2. The brief facts of the case are as follows:

(i) The Section 34 application before the Commercial Court was directed against an arbitral award dated 31.08.2016 passed in MSEFC Case No. 04 under the Micro, Small and Medium Enterprises Development Act.

(ii) The dispute between the parties originates from a transaction relating to supply of iron ore fines and iron weighing for a value of Rs. 22,89,553, in respect of which deductions were made by the petitioner on the ground of sub-standard quality.

(iii) Bajrang Metallic Ltd invoked Section 18 of the MSMED Act before the Micro and Small Enterprises Facilitation Council, registering MSEFC Case No. 04 of 2014 for a total claim of Rs.27,95,520.18, to which the petitioner filed its response.

(iv) The Facilitation Council initially passed an order dated 10.09.2015 directing payment of principal and interest, which was challenged by the petitioner before this Court in W.P.(C) No. 18902 of 2015.

(v) By order dated 19.07.2016, this Court remanded the matter to the Facilitation Council with directions to afford an opportunity of hearing to the petitioner, particularly on the issue of interest, and to conclude the proceedings within a stipulated time.

(vi) Pursuant to the remand, the Facilitation Council passed a fresh award dated 31.08.2016, recording that the principal amount stood paid, but directing payment of enhanced interest and future compound interest.

(vii) After receipt of the award, the petitioner moved an application dated 03.10.2016 before the Facilitation Council seeking modification of the award, and thereafter challenged the award dated 31.08.2016 before this Court in W.P.(C) No. 20768 of 2016.

(viii) W.P.(C) No. 20768 of 2016 was disposed of on 26.04.2017 with a direction to the petitioner to avail the statutory remedy provided under law, which led to the filing of Writ Appeal No. 128 of 2017.

(ix) By order dated 30.11.2023, the Division Bench dismissed Writ Appeal No.128 of 2017, affirming that the petitioner should pursue the statutory remedy available for challenging the award.

(x) Thereafter, the petitioner filed an application under Section 34 of the Arbitration and Conciliation Act before the District Judge, Sundargarh, which was registered as ARBP No. 3 of 2024 and subsequently transferred to the Commercial Court, Rourkela.

(xi) The Commercial Court, at the stage of admission, confined its consideration to the question of limitation and by the impugned order dated 04.07.2025 dismissed the Section 34 application holding it to be barred by limitation under Section 34(3) of the Arbitration and Conciliation Act.

(xii) The petitioner asserts that statutory deposits were made as required under the MSMED Act and that execution proceedings have been initiated on the basis of the award.

(xiii) The petitioner challenges the impugned order on the ground that the period spent in earlier proceedings, including an application for modification before the Facilitation Council