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2025 Supreme(Online)(HP) 7442

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
G.S. Sandhawalia, CJ, Ranjan Sharma, J
State of H.P. & others – Appellant
Versus
Dharam Singh Rana – Respondent
Arb. Appeal No. 221 of 2025



Advocates:
For the Appellants/Petitioners: Mr. Rupinder Singh Thakur, Ms. Ayushi Negi
For the Respondents: Mr. Lovneesh Kanwar, Mr. Tek Chand

The appeal emphasizes that limitation for filing objections to arbitral awards begins upon the party’s receipt of a signed award, underscoring compliance with statutory requirements.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 37 and 34 - Appeal concerning the condonation of delay in filing an application under Section 34 - Delay of 319 days dismissed by the learned Single Judge - Importance of delivery of signed copy of arbitral award per Section 31(5) - Court underscores that non-delivery affects limitation period for objections. (Paras 4, 12, 14)

(B) Limitation Period - Must begin upon receiving a signed copy of the arbitral award - Distinction made between delivery to a party versus an advocate, based on prior case law interpretations. (Paras 6, 8, 9, 12)

Facts of the case:
The appeal concerns the dismissal of a delay condonation application related to an arbitration award, based on the absence of a signed copy as required under Section 31(5).

Findings of Court:
The appeal allowed, the learned Single Judge's order set aside, and delay condoned - The case restored for a merits hearing before the Single Judge.

Issues: Determining if proper compliance with Section 31(5) was observed in delivering the award, thus influencing the limitation period for objections under Section 34.

Ratio Decidendi: Emphasized that delivery of the signed award is central to determining the limitation period for filing objections; hence, the necessity of direct delivery to a party was stressed.

Result: Appeal allowed, original case restored for further hearing.

Table of Content
1. judge's finding on procedural failure affecting filing timelines. (Para 3)

G.S. Sandhawalia , Chief Justice ( O ral)

The present Appeal under Section 37 of the Arbitration and Conciliation Act 1996 (for short ‘the Act’) seeks consideration of the order dated 26.07.2024, passed by the learned Single Judge in Arbitration Case No. 701 of 2024, titled State of Himachal Pradesh & others Vs. Dharam Singh Rana, whereby the application for condonation of delay of 319 days in filing the application under Section 34 of the Act was dismissed

1 Whether the reporters of Local Papers may be allowed to see the judgment?

on the ground that it was beyond the period of 120 days keeping in view of the provisions of Section 34 of the Act.

2. Reliance was placed upon the Judgment passed by the Apex Court in Simplex Infrastructure Limited Vs. Union of India , (2019) 2 SCC 455 to come to the said findings.

3. Learned Counstel for the State has submitted that the learned Single Judge did not take into consideration the fact that the copy of the signed award dated 24.06.2022 was not supplied by the learned Arbitrator, which was a mandatory requirement under Section 31 (5) of the Act, wherein it is provided that a signed copy of the arbitral award has to be delivered to each party to the arbitration proceedings. It is submitted Hthat the necessary averment to this effect was made in the application for condonation of delay, but in the reply filed by the claimant-respondent herein, there was no specific denial to the said fact.

4. We have also examined the record as such of the learned Arbitrator, whereby the proceedings have been noted down in detail in the Zimini orders in separate file and also in the Award file. It does not transpire from the record that the learned Arbitrator had directed that a signed copy of the Award be sent to the appellants-State.

5. Learned Counsel for the State has referred to the judgments passed by the Apex Court in Benarsi Krishna Committee & others Vs. Karmyogi Shelters Private Limited, (2012) 9 SCC 496 and Anil Kumar Jinabhai Patel (dead) through LRs Vs. Pravinchandra Jinabhai Patel & others, (2018) 15 SCC 178. In addition, he has also supplemented his argument by placing reliance upon the judgment passed by the Apex Court in Dakshin Haryana Bijli Vitran Nigam Limited Vs. Navigant Technologies Private Limited , (2021) 7 SCC 657.

6. Perusal of the judgment in Benarsi Krishna’s Hcase (supra)) would go on to show that the challenge as such was to the findings of the High Court that the application was within limitation on the ground that there had to be proper compliance of Section 31 (5) of the Act regarding the supply of the signed copy of the award and that the party had obtained the same only on 15.12.2004, which was held to be within limitation, was upheld and the orders of both the learned Single and the Division Bench of the Delhi High Court were sustained. The relevant part of the judgment reads as under:-

“15. Having taken note of the submissions advanced on behalf of the respective parties and having particular regard to the expression "party" as defined in Section 2(1)(h) of the 1996 Act read with the provisions of Sections 31 (5) and 34(3) of the 1996 Act, we are not inclined to interfere w ith the decision of the Division Bench of the Delhi High Court impugned in these proceedings. The expression "party" has been amply dealt with in Tecco Trichy Engineers case and also in ARK Builders (P) Ltd. Case, referred to hereinabove. It is one thing for an advocate to act and plead on behalf of a Cparty in a proceeding and it is another for an advocate to act as the party himself. The expression "party", as defined in Section 2(1)(h) of the agreement. The said definition is not qualified in any way so as to include the 1996 Act, clearly indicates a person who is a party to an arbitration Section 31 (5) and Section 34 (2) of the 1996 i Act can only mean the party agent of the party to such agreement. Any r

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