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Issues: Whether the period for filing objections to an arbitral award under the Arbitration Act, 1940 commenced only on service of a formal notice of filing of the award, or whether prior knowledge or intimation of the filing of the award was sufficient to start limitation.
Analysis: Section 14(2) of the Arbitration Act, 1940 requires the Court to give notice of the filing of the award, while Article 119(b) of the Schedule to the Limitation Act, 1963 begins limitation from the date of service of notice of the filing of the award. The governing principle is that the parties must be made aware that the award has been filed so that objections may be taken within time. The form of notice is not decisive. Informal intimation, if it clearly conveys the filing and availability of the award, is sufficient. The order passed on 21.09.2022, directing payment of the arbitrator's balance fees and stating that the award would then be furnished, amounted to sufficient notice because it informed the respondents that the award had been filed and was accessible upon compliance with the direction.
Conclusion: Formal notice on 18.11.2022 was not necessary for the commencement of limitation. Limitation had already begun from the earlier intimation and had expired when the Section 17 application was filed. The issue is answered in favour of the appellant.
Ratio Decidendi: For the purpose of filing objections to an award under the Arbitration Act, 1940, notice of filing need not be formal in character; what is required is sufficient intimation that the award has been filed and is available to the parties.
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