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        Companies Law

        1988 (8) TMI 428 - SC - Companies Law

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        Limitation for setting aside an arbitral award runs from court notice or intimation of filing, even if not in writing. Limitation for an application to set aside an arbitral award begins only when the award is filed in the proper court and notice or intimation of that ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                            Limitation for setting aside an arbitral award runs from court notice or intimation of filing, even if not in writing.

                            Limitation for an application to set aside an arbitral award begins only when the award is filed in the proper court and notice or intimation of that filing is served on the parties by the court or its officer. The notice need not be in writing; oral or other communicated intimation is sufficient if the substance of notice is established. On the facts, the party challenging the award had knowledge of the filing well before the relevant date, so the statutory period had already expired. The challenge was therefore time-barred, and the dismissal of the application to set aside the award was upheld.




                            Issues: Whether the application to set aside the award was barred by limitation, having regard to the requirement of notice of filing of the award under the Arbitration Act and the thirty-day period under the Limitation Act.

                            Analysis: For limitation to commence, the award must be filed in the proper court and notice of that filing must be served by the court or its officer on the parties concerned. The notice need not necessarily be in writing; intimation of the filing of the award, even if communicated otherwise, is sufficient if the substance of notice is established. On the facts found, the appellant had knowledge of the filing of the award well before the date relied upon, and the notice requirement was treated as satisfied prior to 30 July 1981. The application to set aside the award was therefore outside the statutory period.

                            Conclusion: The application to set aside the award was barred by limitation and the High Court's dismissal of it was upheld.

                            Final Conclusion: The appeal failed because the challenge to the award was time-barred once notice of filing of the award was held to have been served by the court.

                            Ratio Decidendi: For the purpose of limitation to set aside an award, it is enough if the award is filed in court and the court gives notice or intimation of that filing to the parties; the notice need not be in writing, and limitation runs from the date of such service or intimation.


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                            ActsIncome Tax
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