IMPORTANT POINT
The delivery of a signed copy of an arbitral award under Section 31(5) of the Arbitration Act is essential for initiating limitation periods, but actual knowledge and acknowledgment of the award by a party can negate claims of non-receipt, thereby upholding the objectives of expeditious dispute resolution.

JUDGMENT :

HON’BLE SHEKHAR B. SARAF, J.

1. The instant application has been filed under Section 37 of the Arbitration & Conciliation Act, 1996 (hereinafter referred to as the ‘Arbitration Act’) against the judgment and order dated November 16, 2019 passed by the District Judge, Mathura rejecting the application filed by Bharatiya Rashtriya Rajmarg Pradhikaran (hereinafter referred to as the ‘Appellant’) under Section 34 of the Arbitration Act.

FACTS

2. I have laid down the factual matrix of the instant lis below:

(a) A notification was issued under Section 3A of the National Highways Act, 1956 (hereinafter referred to as the ‘NHAI Act’) on December 4, 2009 followed by a declaration dated June 25, 2010 under Section 3D of the NHAI Act in respect of the land in question. Thereafter, the Competent Authority declared the award determining the amount of compensation in respect of the land in question under Section 3G of the NHAI Act.

(b) Against the award of the Competent Authority, the Respondents filed a petition under Section 3G(5) of the NHAI Act before the Arbitrator (Additional Commissioner (Administration), Agra Division, Agra). The Arbitrator published an award on July 28, 2016 and remanded the matter to the Competent Authority.

(c) The appellant filed an application under Section 34 of the Arbitration Act against the award dated July 28, 2016 which was rejected vide judgment and order dated November 16, 2019.

(d) Against the judgment and order dated November 16, 2019, the appellant has filed the instant application under Section 37 of the Arbitration Act before this Court.

CONTENTIONS OF THE APPELLANT

3. Shri Pranjal Mehrotra, learned counsel appearing for the appellant has made the following submissions before this Court:

(i) As per the provisions of Section 3G(5) of the NHAI Act, the Arbitrator ought to have determined the amount itself. As such, the Arbitrator was not justified in remitting the matter back to the Competent Authority.

(ii) Learned District Judge acted with patent illegality in passing the impugned judgment and order dated November 16, 2019.

(iii) The appellant never received a signed copy of the arbitral award dated July 28, 2016 which is a mandatory requirement under Section 31(5) of the Arbitration Act. As such, the Learned District Judge was not justified in dismissing the application filed by the appellant as time barred.

CONTENTIONS OF THE RESPONDENT

4. Learned counsel appearing for the Respondents has made the following submission before this Court: The appellant had knowledge of the arbitral award dated July 28, 2016 and was fully aware of the same. As such, it is not open for it to now argue that since the appellant did not receive a signed copy of the award dated July 28, 2016, the period of limitation for challenging an arbitral award under Section 34 of the Act never started. Learned District Judge did not err in dismissing the application filed by the appellant under Section 34 of the Act as time barred. Reliance in this regard is placed upon the judgment of the High Court of Chhattisgarh in Union of India -v- Bhola Prasad Agrawal reported in 2022 SCC OnLine Chh 1644.

ANALYSIS

5. I have heard the learned counsel appearing for the parties and perused the materials on record.

6. The primary issue raised in the instant case is that whether or not the Learned District Judge was justified in dismissing the application filed by the appellant under Section 34 of the Arbitration Act since the appellant was never served with a signed copy of the arbitral award, which is a mandatory requirement under Section 31(5) of the Arbitration Act. Relevant parts of Section 31(5) of the Arbitration Act have been extracted herein below for ease of reference:

“31. Form and contents of arbitral award. —

(1) ...

(2) ...

(3) ...

(4) ...

(5) After the arbitral award is made, a signed copy shall be delivered to each party.”

7. Section 31(5) of the Arbitration Act while seemingly procedural in nature, embodies broader objectives. The Hon’ble S