GAUHATI HIGH COURT
Not Disclosed, J
Assam Urban Water Supply and Sewerage Board Guwahati v. Subhash Project and Marketing Ltd. and Another
Appeal | 2004
| Table of Content |
|---|
| 1. factual basis for the appeals and arbitration awards. (Para 1 , 2) |
| 2. arguments regarding the application of limitation periods. (Para 4 , 5) |
| 3. court's interpretation of statutory provisions and their intent. (Para 6 , 7) |
| 4. ratio concerning limitation and exclusions under the act. (Para 8) |
| 5. final conclusion to dismiss the appeals. (Para 9) |
1. Both the appeals being directed against two identical orders dated 1-6-2004 and 5-6-2004 passed by the Learned District district Judge, Kamrup, were heard together and are being disposed by this common Judgment and Order.
2. The respondent No. 1 in the two appeals under consideration was appointed as the Contractor for execution of the works relating to "Construction of Tezpur Town Water Supply Scheme" and "Tinsukia Town Water Supply Scheme". Certain disputes and differences having arisen between the parties under the above contracts, the same were referred to arbitration by one Sri M. N. Bhagawati as the sole Arbitrator. The Sole Arbitrator made two separate awards, both dated 22-8-2003, in terms of which certain amounts of money has become payable to the respondent contractor. The appellant received both the awards on 26-8-2003. On 2-1-2004 the appellant filed two separate applications before the Learned District Judge, Kamrup, Guwahati under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the Act of 1996) for setting aside the awards dated 22-8-2003. On the same date i.e. on 2-1-2004 the applicant had also filed two separate applications placing before the Court the reasons for not being able to file the applications under within 3 months. The Learned District Judge, Kamrup by the impugned orders dated 1-6-2004 and 5-6-2004 dismissed the applications filed by the appellant under of the Act of 1996 on the ground that the same were filed beyond the statutory period as provided by of the Act of 1996. Aggrieved, the instant appeals have been filed.
3. We have heard Sri N. C. Phukan, learned counsel appearing for the appellant and Sri P. C. Markanda, learned senior counsel appearing for the respondents.
4. Sri Phukan, learned counsel for the appellant while assailing the orders dated 1-6-2004 and 5-6-2004 passed by the learned Court below, has argued that under the provisions of Section 34 (3) of the Act of 1996, an application for setting aside an arbitral award has to be made within a period of 3 months from the date of receipt of the award by the party making the application. The period of 3 months stipulated, may, in an appropriate case be extended by another period of 30 days if sufficient cause is shown, to the satisfaction of the Court, that the party making the application was prevented by sufficient cause from filing the same with the prescribed period of 3 months. Sri Phukan, learned counsel for the appellants, has submitted that in the present case it is not disputed by the respondent that the appellant was served with the arbitral award on 26-8-2003. The appellant, therefore, could have filed the applications for setting aside the awards on or before 26-11-2004 (i.e. 3 months from the date of receipt of the awards) and if sufficient cause could be shown by the appellant for not being able to file the applications within the aforesaid time, the same could have been filed on any date on or before 26-12-2004. According to Sri Phukan, as per the calendar for the Civil Courts in the State of Assam for the year 2003, the dates between 25-12-2003 and 1-1-2004 (both days inclusive) were declared as holidays and it is on the reopening day i.e. 2-1-2004 that the appellant had filed the applications under for setting aside the awards along with the separate applications explaining the reasons and showing cause as to why the applications under could not be filed within the period of three months. According to Mr. Phukan, under Section 4 of the Limitation Act, 1963 the applications for setting aside the awards could have been
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