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        Case ID :

        2011 (2) TMI 1613 - HC - Indian Laws

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        'Not Claimed' endorsement on registered post can amount to valid service and start limitation for challenging an arbitral award. An arbitral award sent by registered post to the correct business address and returned with the endorsement 'Not Claimed' was treated as valid service. ...
                      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.

                          "Not Claimed" endorsement on registered post can amount to valid service and start limitation for challenging an arbitral award.

                          An arbitral award sent by registered post to the correct business address and returned with the endorsement "Not Claimed" was treated as valid service. The statutory presumption of service under Section 3 of the Arbitration and Conciliation Act, 1996, read with Section 27 of the General Clauses Act, 1897, applied because the addressee did not rebut the presumption by showing non-tender or lack of responsibility for the failed delivery. As service was complete on that basis, limitation under Section 34(3) commenced from 8 August 2008, and the Section 34 petition was time-barred.




                          Issues: Whether an arbitral award sent by registered post and returned with the endorsement "Not Claimed" amounted to valid service so as to start limitation under Section 34(3) of the Arbitration and Conciliation Act, 1996.

                          Analysis: The award was dispatched to the petitioner's correct business address by registered post with acknowledgment due. The envelope came back with the endorsement "Not Claimed". In such circumstances, the statutory presumption of service under Section 3 of the Arbitration and Conciliation Act, 1996, read with the principle in Section 27 of the General Clauses Act, 1897, applied. The petitioner did not rebut the presumption by showing that the award was not in fact tendered or that it was not responsible for the non-service. The endorsement "Not Claimed" was treated as sufficient to establish service.

                          Conclusion: "Not Claimed" constituted good service of the award, limitation commenced from 8 August 2008, and the Section 34 petition was time-barred.


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                          ActsIncome Tax
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