The High Court of Calcutta, while disposing of an application filed u/s 34 of the Arbitration and Conciliation Act, 1996 for setting aside an arbitral award dated 19th May 2016 passed by the sole arbitrator, held that the instant application u/s 34 of the Arbitration and Conciliation Act for setting aside an arbitral award dated 19th May 2016 may very well be filed without any application for condonation of delay on or before 19th August 2016, i.e. within 3(three) English calendar month after excluding the date of receipt of the award.
Brief Facts:
Respondent No.1-in-person to this matter raised a point of limitation before this court by submitting that the instant application u/s 34 of the Arbitration and Conciliation Act, 1996, is barred by limitation according to the provision of Section 34(3) of the said Act 1996.
Contentions of the Petitioner:
The learned counsel appearing on behalf of the Petitioner submitted that the application u/s 34 of Arbitration and Conciliation Act is very well within the period as prescribed u/s 34(3) of Arbitration and Conciliation Act 1996.
Contentions of the Respondent:
The learned counsel appearing on behalf of the Respondent submitted that the award in question was passed and signed on 19th May 2016. The award was received on the same day i.e. on 19th May of 2016. He argued that the instant application u/s 34 of the Limitation Act was filed on 17th August 2016. The date of filing of the instant application from the date of receiving of the award is calculated to be 91 days. He argued that Section 34(3) of Act 1996 provides that an application for setting aside the award can only be filed within 90 days from the date of delivery of the award. The present petitioner preferred this application on the 91st day. Thus, the instant application filed by the petitioner is barred by limitation and liable to be dismissed.
Observations of the court:
The court noted that the golden rule of the Interpretation of a statute is that, it has to be read and interpreted in its plain meaning for determining the exact intention of the legislature. Under this Rule, the Court has to consider what the statute actually says, rather than what it might mean. As per Section 34(3) of Act 1996, an application for setting aside of the award may not made after three months have elapsed from the date on which the party making the application had received the arbitral award.
The Court observed that the instant application u/s 34 of the Arbitration and Conciliation Act which was filed on 17th August 2016 for setting aside an arbitral award dated 19th May 2016 may very well be filed without any application for condonation of delay on or before 19th August 2016, i.e. within 3(three) English calendar month after excluding the date of receipt of the award. The General Clauses Act and Limitation Act are applicable in construing the provision of the Arbitration and Conciliation Act, 1996.
The decision of the Court:
The Calcutta High Court, disposing of the petition, held that the instant application was filed on 17th August 2016 and thus the application u/s 34 of the Arbitration and Conciliation Act 1996 is within the statutory period of limitation.
Case Title: Future Market Networks Ltd. v Laxmi Pat Surana & Anr.
Coram: Hon’ble Justice Subhendu Samanta
Case No.: AP-COM/135/2024
Advocate for the Petitioner: Mr. Rishad Medora
Advocate for the Respondent: Mr. L. P. Surana
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