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ABHAY S. OKA, PANKAJ MITHAL
State of West Bengal represented through the Secretary – Appellant
Versus
Rajpath Contractors and Engineers Ltd. – Respondent
JUDGMENT :
Abhay S. Oka, J.
FACTUAL ASPECTS
1. The first appellant – the State of West Bengal appointed the respondent as a contractor for the construction of a bridge. As there was a dispute between the parties, the respondent invoked the arbitration clause in the contract, and a sole arbitrator was appointed. On 30th June 2022, the Arbitral Tribunal passed an award directing the appellants to pay a sum of Rs.2,11,67,054.00 (Two Crores Eleven Lakhs Sixty Seven Thousand Fifty Four Rupees Only) to the respondent with interest thereon, as directed. The counter-claim made by the appellants was dismissed. The appellants received a copy of the award on the same day. The High Court of Judicature at Calcutta was closed for pooja vacation from 1st October 2022 to 30th October 2022 (both days inclusive). On 31st October 2022, the appellants filed a petition under Section 34 of the Arbitration and Conciliation Act, 1996 (for short, ‘the Arbitration Act’) to challenge the award. By the impugned order dated 4th May 2023, the High Court dismissed the petition under Section 34 of the Arbitration Act filed by the appellants on the ground of bar of limitation. The High Court held that the period of l
Limitation Act shall apply to arbitrations as it applies to proceedings in Court.
The application under Section 34 of the Arbitration Act was dismissed as barred by limitation since filed after the three-month period following the award, with no eligibility for an extension under ....
The prescribed period for filing an application under Section 34 of the Arbitration Act is three months, and the 30-day extension does not constitute part of this period.
The court emphasized the peremptory language of section 34 of the Arbitration and Conciliation Act, 1996, and the requirement for sufficient cause to condone any delay in filing the application.
The Limitation Act applies to arbitration proceedings under Section 34 of the ACA, but the condonable period does not extend beyond 30 days when it expires during a court holiday.
The limitation period for filing a petition under Section 34 of the Arbitration and Conciliation Act is three months from the award's receipt, not interrupted once commenced.
The statutory limitation period under Section 34(3) of the Arbitration and Conciliation Act is inflexible, and applications filed beyond this period cannot be entertained.
Setting aside arbitral award – Period of limitation – Section 12(1) of Limitation Act, 1963 will apply.
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