2021 (3) TMI 137 - SC - Indian Laws

Limitation period for filing objections under Section 34 of Arbitration Act starts from award delivery date. Majority award prevails. Objections reinstated.

DAKSHIN HARYANA BIJLI VITRAN NIGAM LTD. Versus M/s NAVIGANT TECHNOLOGIES PVT. LTD.

The Court held that the limitation period for filing objections under Section 34 of the Arbitration and Conciliation Act, 1996, commences from the date ... Arbitral Award - Time Limitation for filing petition - whether the period of limitation for filing the Petition under Section 34 would commence from the date on which the draft award dated 27.04.2018 was circulated to the parties, or the date on which the signed copy of the award was provided? HELD THAT:- In an arbitral tribunal comprising of a panel of three members, if one of the members gives a dissenting opinion, it must be delivered contemporaneously on the same date as the final award, and not on a subsequent date, as the tribunal becomes functus officio upon the passing of the final award. The period for rendering the award and dissenting opinion must be within the period prescribed by Section 29A of the Act. There is only one date recognised by law i.e. the date on which a signed copy of the final award is received by the parties, from which the period of limitation for filing objections would start ticking. There can be no finality in the award, except after it is signed, because signing of the award gives legal effect and finality to the award - The date on which the signed award is provided to the parties is a crucial date in arbitration proceedings under the Indian Arbitration and Conciliation Act, 1996. It is from this date that: (a) the period of 30 days’ for filing an application under Section 33 for correction and interpretation of the award, or additional award may be filed; (b) the arbitral proceedings would terminate as provided by Section 32(1) of the Act; (c) the period of limitation for filing objections to the award under Section 34 commences. The period of limitation for filing objections would have to be reckoned from the date on which the signed copy of the award was made available to the parties i.e. on 19.05.2018 in the instant case - It is the admitted position that the objections were filed within the period of limitation prescribed by Section 34(3) of the Act, if reckoned from 19.05.2018. Undisputedly, in the instant case, the objections have been filed within the period of limitation prescribed under Section 34(3) from the date of receipt of the signed award. Appeal allowed. Issues Involved:1. Commencement of the limitation period for filing a petition under Section 34 of the Arbitration and Conciliation Act, 1996.2. The legal significance of the majority award versus the dissenting opinion in arbitration proceedings.3. The procedural requirements for the delivery and receipt of the arbitral award.Detailed Analysis:1. Commencement of the Limitation Period:The primary issue was whether the limitation period for filing a petition under Section 34 of the Arbitration and Conciliation Act, 1996, begins from the date the draft award was circulated (27.04.2018) or from the date the signed copy of the award was provided (19.05.2018). The Court held that the limitation period for filing objections would commence from the date on which the signed copy of the award was made available to the parties. This is in line with Section 31(5) of the Act, which mandates that a signed copy of the award must be delivered to each party. The Court emphasized that the delivery and receipt of the signed award are crucial for setting the limitation period in motion.2. Majority Award vs. Dissenting Opinion:The Court clarified that the arbitral award refers to the decision made by the majority of the members of the arbitral tribunal, as per Section 29(1) of the Act. The dissenting opinion is not considered an award but can be used to support arguments under Section 34. The Court cited several precedents, including Ssangyong Engineering and Construction Co. Ltd. v. NHAI, to highlight that while a dissenting opinion can be relevant for judicial scrutiny, it does not affect the commencement of the limitation period for filing objections.3. Procedural Requirements for Delivery and Receipt of the Award:The Court examined the procedural history and found that although the award was pronounced on 27.04.2018, the signed copy was provided to the parties only on 19.05.2018. The procedural orders of the tribunal indicated that the draft award was circulated to identify any typographical or clerical errors, and the dissenting opinion was delivered on 12.05.2018. The final signed copy was handed over on 19.05.2018, which marked the termination of the proceedings. The Court reiterated that the period of limitation for filing objections under Section 34(3) starts from the date of receipt of the signed award.Conclusion:The Court concluded that the objections filed by the appellant corporation were within the limitation period prescribed by Section 34(3) of the Arbitration and Conciliation Act, 1996, when reckoned from 19.05.2018. Consequently, the judgments of the Civil Court and the High Court, which dismissed the objections on the ground of delay, were set aside. The petition under Section 34 was restored to the file of the Court of District and Sessions Judge, Hissar, Haryana, to be decided on merits in accordance with law.