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2000 Supreme(P&H) 1458

PUNJAB AND HARYANA HIGH COURT
R.L. Anand, J.
Ex. Engineer H.S.A.M. Board - Petitioner
Versus
Dharam Pal - Respondent
CR 1482 of 1999.
Decided On : 28 November, 2000

Advocates Appeared:
For the Petitioner:Mr. K.K. Gupta, Advocate.
For the Respondent:Mr. K.S. Dhillon, Advocate.

The court clarified the interpretation of Section 33(1)(a) and Section 33(2) of the Arbitration and Conciliation Act, 1996, regarding the finality and executability of arbitration awards.

Headnote:

Arbitration - Implementation of Award - Arbitration and Conciliation Act, 1996, Section 33(1)(a), Section 33(2), Section 34(3)

Fact of the Case:

A dispute between the parties was referred to an arbitrator who gave an award. The respondent filed for execution of the award, while the petitioner objected, claiming the award was not final due to a pending application under Section 33(1)(a) of the Arbitration and Conciliation Act, 1996.

Finding of the Court:

The court found that the application under Section 33(1)(a) was deemed disposed of after the expiry of 30 days, making the award executable. The court also allowed the petitioner two months to file objections to the award.

Issues: Dispute over the finality of an arbitration award due to a pending application under Section 33(1)(a) of the Arbitration and Conciliation Act, 1996.

Ratio Decidendi: The court held that the application under Section 33(1)(a) was deemed disposed of after 30 days, making the award final and executable. The court also extended the time for filing objections based on a bona fide legal belief.

Final Decision: The revision was dismissed, and the petitioner was given two months to file objections to the award.

JUDGMENT

R.L. Anand, J. - This is a civil revision and has been directed against the order dated 1.3.1999, passed by the Court of Civil Judge (Sr. Divn.), Kaithal, who dismissed the objections of the petitioner and proceeded for the implementation of the award dated 27.2.1998.

2. The facts in this case are not much in dispute. A dispute arose between the respondent and the petitioner and the matter was referred to the Arbitrator, who gave the award on 27.2.1998. Respondent filed an application under Section 33(1)(a) of the Arbitration and Conciliation Act, 1996, and made a prayer that the award may be rectified as there are some clerical or typographical mistakes. It appears that the Arbitrator did not dispose of that application within 30 days from the receipt of the said application. The respondent filed an execution before the executing Court on 6.1.1999 for the implementation of the award. The objections were filed by the petitioner on 19.2.1999. In pursuance of the execution filed by the respondent, the executing Court passed the order dated 5.2.1999 attaching the property of the petitioner. Thereafter, the objections were filed by the petitioner on the plea that the execution is premature because the application of the Contractor under Section 33(1)(a) is still pending before the Arbitrator. The award has not attained the finality and, in these circumstances, the order dated 5.2.1999 should be recalled. Notice of the application was given to the respondent. According to him, no application is pending before the Arbitrator under Section 33(1)(a) and, therefore, the objections are frivolous. The executing Court vide the impugned order dated 1.3.1999 and for the reasons given in paras 4 and 5 of the order, dismissed the objections and directed the petitioner for the implementation of the award dated 27.2.1998. Paras 4 and 5 of the order of the executing Court read as under :-

"4. First of all let the admitted facts be taken note of. After a dispute arose between the decree-holder and judgment-debtor, the matter was referred to the arbitrator Sh. Anand Parkash, Superintending Engineer, H.S.A.M. Board Panchkula and vide order/award dated 27.2.1998, handed down by the Arbitrator, award was passed in favour of the decree-holder and by virtue of present execution petition, decree holder has sought to get the said award dated 27.2.1998 implemented.

5. Though D.H. had admittedly applied to the arbitrator on 23.3.1998 for reconciliation of the award, yet during the course of arguments, learned counsel for the decree-holder has stated that the said application has been disposed of and now no reconciliation proceedings are pending before the aforesaid Arbitrator. Since now no proceedings are pending and award 27.2.1998 has become final between the parties, so DH has every right to get the same implemented by way of presentation of present execution petition. Thus objection petition containing no merit is ordered to be dismissed."

Not satisfied with the order, the present revision.

3. I have heard the counsel for the parties and with their assistance have gone through the record of this case.

4. Counsel for the petitioner referred to various provisions of the new Arbitration Act and submitted that since the application filed by the Contractor before the Arbitrator on 23.3.1998 had not been disposed of and till that application is not disposed of, the award does not attain the force of decree. He submitted that the award becomes the decree after the expiry of 90 days from the date of the dismissal of the application, if any, moved under Section 33(1)(a).

5. On the contrary, counsel for the respondent submitted that in this case the application of course was made but that stood disposed of with the passage of time. He submitted that when the application, is moved, under Section 33(1), it is obligatory upon the Arbitrator to dispose of that application within 30 days from the receipt of the request and if that application is not disposed of








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