Limitation for challenge to arbitral award: receipt date excluded and filing on next working day valid when period ends on court holiday.

For Section 34(3) of the Arbitration and Conciliation Act, 1996, the date of receipt of the arbitral award is excluded under Section 12(1) of the Limitation Act, 1963, and the three-month period is computed from the next day. Where that period expires on a court holiday, Section 4 applies and permits filing on the next working day. The application to set aside the award filed on the next working day was therefore within limitation, and no separate condonation request was required.

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Issues: Whether an application to set aside an arbitral award under Section 34(3) of the Arbitration and Conciliation Act, 1996 was filed within limitation after excluding the date of receipt of the award under Section 12(1) of the Limitation Act, 1963 and applying Section 4 of that Act when the three-month period expired on a court holiday.

Analysis: Section 34(3) prescribes a period of three months from the date of receipt of the arbitral award, with a further condonable period of thirty days on sufficient cause being shown. The expression used for the primary period is three months, not ninety days. Section 12(1) of the Limitation Act applies to proceedings under Section 34, so the day on which the award was received must be excluded while computing limitation. Once that day is excluded, the three-month period commenced on the next day and expired on a court holiday. In such a situation, Section 4 of the Limitation Act applies and permits filing on the next working day. Accordingly, the application filed on the next working day was within limitation and no separate plea for condonation was required.

Conclusion: The application under Section 34 was within limitation, and the challenge to the arbitral award was not barred by time.

Ratio Decidendi: For purposes of Section 34(3) of the Arbitration and Conciliation Act, 1996, the date of receipt of the arbitral award is excluded under Section 12(1) of the Limitation Act, 1963, and Section 4 of that Act applies where the three-month period expires on a court holiday, allowing filing on the next working day.

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