Arbitration time limit under Rule 3 cannot be revived by late notice; extension requires court permission.

Under Rule 3 of the First Schedule to the Arbitration Act, 1940, the four-month period for making an award runs from the arbitrators' entry on the reference, and a notice to act cannot be used after that period to revive or extend the reference. The expression "to act" is wider than "enter on the reference", but it does not permit a party to enlarge time indefinitely by late notice. Any extension beyond four months must be granted by the court under Section 28. An award made after expiry of the four-month period without such extension is invalid and without jurisdiction.

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Issues: Whether, under Rule 3 of the First Schedule to the Arbitration Act, 1940, a notice calling upon arbitrators to act given after they had already entered on the reference could restart the four-month period for making the award, and whether an award made after expiry of four months from entry on the reference was valid without extension of time by the court.

Analysis: Section 3 of the Arbitration Act, 1940 incorporates the First Schedule into the arbitration agreement, and Rule 3 requires the award to be made within four months after entering on the reference or after having been called upon to act by notice in writing, or within extended time allowed by the court under Section 28. The expression "to act" is wider than "enter on the reference", but the provision cannot be construed so broadly as to allow a party, by giving notice at any time, to enlarge the period indefinitely or revive an abandoned reference. A notice given after the arbitrators have already entered on the reference does not restart the period of limitation. The court's power to enlarge time under Section 28 provides the lawful method for extending the period when necessary.

Conclusion: The notice given long after the expiry of four months from entry on the reference was ineffective to extend time, and the award made thereafter was without jurisdiction and invalid.

Ratio Decidendi: Under Rule 3 of the First Schedule to the Arbitration Act, 1940, a notice calling upon arbitrators to act can operate only within the four-month period beginning from their entry on the reference, and time beyond that period can be extended only by the court under Section 28.

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