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2023 Supreme(P&H) 2169

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
GURVINDER SINGH GILL, J.
Ram Piari – Appellant
Versus
M/s. Shri Ram Transport Finance Company & Ors. – Respondents
FAO-3087 of 2018 (O&M)
Decided On : 22-08-2023

Advocates Appeared:
Mr. Satbir Rathore, Advocate; For the Appellant
None; For the Respondents

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 34 - Appeal against dismissal of objections to an ex parte arbitration award - Objections were dismissed as time-barred, although they were filed within the limitation period as per service date - Court emphasized that the learned Additional District Judge should have focused solely on the limitation issue as per the precedent set by the Supreme Court in S.V. Matha v. Lal Chand Meghraj and others, (2007) 14 SCC 722 - Award set aside and matter remanded for fresh hearing. (Paras 2, 10, 11)

(B) Limitation - Time period for filing objections - Objections to an arbitration award must be within 90 days from the date of communication of the award, which the appellant was able to demonstrate was received on 18.10.2014. (Paras 3, 9)

Facts of the case:
The dispute arose from a loan for a vehicle; the appellant was declared a defaulter leading to an ex parte award dated 3.10.2014. Objections were filed under Section 34 but dismissed for being time-barred according to the lower court's interpretation. (Paras 1, 2)

Findings of Court:
The objections were filed within the limitation period following the appellant's receipt of the award. The court found that the additional findings on merits by the lower court were improper as they diverged from the appropriate limitation inquiry. (Paras 9, 10)

Issues: Whether objections were filed within limitation; whether the court below erred by deciding on merits alongside timeliness. (Paras 3, 10)

Ratio Decidendi: The court ruled that the objection was timely, emphasizing importance of limitations and conformance to precedent that limits a judge's role to matters of timeliness only when dealing with similar procedural issues. (Paras 10, 11)

Result: The appeal is hereby accepted and the impugned order dated 4.1.2018 is set aside.

Table of Content
1. dispute origin and procedural history. (Para 1 , 2)
2. appellant argues objections within time, cites authority. (Para 3 , 4)
3. court's analysis of service and limitation issues. (Para 5 , 6 , 9)
4. court must focus on limitation, not merits. (Para 10)
5. impugned order set aside; remanded for re-hearing. (Para 11)

JUDGMENT

Mr. Gurvinder Singh Gill, J. (Oral)

The appellant assails order dated 4.1.2018 passed by learned Additional District Judge, Chandigarh, dismissing objections filed by the appellant under section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to be as 'the Act') against ex parte award dated 3.10.2014 (Annexure A-1).

2. In nutshell, the dispute amongst the parties arose from a loan which the appellant had raised for purchasing a vehicle. Since, the appellant, as per the respondent was found to be defaulter, the arbitration proceedings were invoked wherein the appellant was proceeded against ex parte and an ex parte award dated 3.10.2014 (Annexure A-1) was passed. The appellant upon coming to know about the said ex parte award, filed objections (Annexure A-6) under Section 34 of the Act before the District Judge on 15.1.2015 which have been dismissed vide impugned order dated 4.1.2018.

3. Learned counsel for the appellant submits that the learned Additional District Judge fell in error in holding that the objections filed under Section 34 of the Act had been filed beyond the period of limitation of 90 days whereas the same, as a matter of fact had been filed within 90 days from the date of award in question had been communicated to the appellant which was received by him on 18.10.2014.

4. Learned counsel has further submitted that the award in question, in any case deserves to be set aside as the same has been passed on the grounds of limitation as well as on merits and that such practice had been deprecated by the Hon'ble Supreme Court in S.V. Matha v. Lal Chand Meghraj and others, (2007) 14 SCC 722. Learned counsel further submits that the aforesaid judgment of Hon'ble Supreme Court has been followed by this Court as well in FAO-2750-2015, FAO-2405-2021 and FAO-2898-2021.

5. Although, the respondent had been duly served and Mr. Manish Kumar, Advocate had put in appearance on behalf of the respondent No.1 on 17.7.2019, but he has not caused appearance thereafter. As such, it is apparent that he is not interested in contesting this appeal.

6. The award in question admittedly was passed on 3.10.2014. As per the case of the appellant, the award in question had been sent at his native place i.e. village Nathal, Post Office, Goyala, Tehsil Kasauli, District Solan, Himachal Pradesh, whereas the appellant at that point of time was serving in Army School at Dagshai. Learned counsel in this regard has drawn the attention of this Court to copy of envelop (Annexure A-5). While the envelop is addressed to the appellant by mentioning his address of Village Nathal, P.O. Chandi, Tehsil Kasauli, District Solan (HP), but there are remarks on the left side recorded that the addressee resides at Dagshai Army School. The said report is dated 15.10.2014. The said envelop also shows that the same was received at the Post Office, Dagshai on 18.10.2014, as would be evident from seal impression affixed therein. The Court of learned Additional District Judge while holding that the objections had been filed beyond limitation had made the following observations:

"7. The objector/applicant has preferred the objections under section 34 of the Act against the Award dated 3.10.2014 passed by the respondent no.2 the sole Arbitrator. The applicant has preferred the objections before this court on 15.1.2015. Admittedly, the objections have not been preferred within time as envisaged in the Arbitration and Conciliation Act, 1996. In the application for condonation of delay, it has been averred by the applicant that the copy of award was received by the applicant on 18.10.2014, hence the delay, if any

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