Skip to main content

Limitation Period To Set Aside Arbitral Award Begins From Date Of Disposal Of Application To Correct The Award

In M/S VED PRAKASH MITHAL AND SONS vs UNION OF INDIA, an Arbitral Award was delivered on 30.10.2015 and received by the respondent on 07.11.2015. An application to correct the said aforesaid Award was made by the respondent on 16.11.2015. A similar application to correct the Award was also made on behalf of the respondent on 20.11.2015. Both these applications were decided by the learned Arbitrator together and dismissed on 14.12.2015. 

On 11.03.2016, objections and application objecting to the Award was filed under Section 34 of the Arbitration Act, 1996 by the respondent. The only question that arises is whether the aforesaid Section 34 application could be said to be within the time mentioned in Section 34(3) of the Act.

The learned Additional District Judge, by order dated 30.05.2017, found that the application was time-barred, reasoning that the application should have been made on and from the first date as, in fact, there was no correction made to the Award.

On appeal before the High Court, the learned Single Judge of the High Court, by his judgment dated 10.07.2017, reversed the order of the Additional District Judge stating that as the Section 33 application had been disposed of only on 14.12.2015, the period mentioned in Section 34(3) would start running only from then, in which case, the Section 34 application could be said to be within time.

The Supreme Court decided that the view of the Delhi High Court and but not the judgment of a Single Judge of the Bombay High Court in the case of Amit Suryakant Lunavat vs. Kotak Securities, Mumbai, which was relied upon by the petitioners was correct since the Section 34(3) specifically speaks of the date on which a request under Section 33 has been “disposed of” by the Arbitral Tribunal. The Supreme Court are also of the view that a “disposal” of the application can be either by allowing it or dismissing it.


Comments

  1. seshachary5 September 2018 at 03:42

    The concluding para in this article is wrong. The Supreme Court held that the view of Delhi HC is correct and view of Bombay HC to be not correct.

    ReplyDelete

Post a Comment

Most viewed this month

Michigan House Approves 'Right-to-Work' Bill

Amid raucous protests, the Republican-led Michigan House approved a contentious right-to-work bill on  Dec 11 limiting unions' strength in the state where the (Union for American Auto Workers)  UAW was born. The chamber passed a measure dealing with public-sector workers 58-51 as protesters shouted "shame on you" from the gallery and huge crowds of union backers massed in the state Capitol halls and on the grounds. Backers said a right-to-work law would bring more jobs to Michigan and give workers freedom. Critics said it would drive down wages and benefits. The right-to-work movement has been growing in the country since Wisconsin fought a similar battle with unions over two years ago. Michigan would become the 24th state to enact right-to-work provisions, and passage of the legislation would deal a stunning blow to the power of organized labor in the United States. Wisconsin Republicans in 2011 passed laws severely restricting the power of public s...
Post a Comment
Read more

Power to re-assess by AO and disclosure of material facts

In AVTEC Limited v. DCIT, the division of the Delhi High Court held that AO is bound to look at the litigation history of the assessee and cannot expect the assessee to inform him.  In the instant case, the Petitioner, engaged in the business of manufacturing and selling of automobiles, power trains and power shift transmissions along with their components, approached the High Court challenging the re-assessment order passed against them. For the year 2006-07, the Petitioner entered into a Business Transfer Agreement with Hindustan Motors Ltd, as per which, the Petitioner took over the business from HML.  While filing income tax return for the said year, the petitioner claimed the expenses incurred in respect of professional and legal charges for the purpose of taking over of the business from HML as capital expenses and claimed depreciation. Article referred: http://www.taxscan.in/assessing-officer-bound-look-litigation-history-assessee-delhi-hc-read-order/8087/
Post a Comment
Read more

The recovery of vehicles by the financier not an offence - SC

Special Leave Petition (Crl.) No. 8907  of 2009 Anup Sarmah (Petitioner) Vs Bhola Nath Sharma & Ors.(Respondents) The petitioner submitted that  respondents-financer had forcibly taken away the vehicle financed by them and  illegally deprived the petitioner from its lawful possession  and  thus,  committed  a crime. The complaint filed by the petitioner had been  entertained  by  the Judicial Magistrate (Ist Class), Gauhati (Assam) in Complaint Case  No.  608 of 2009, even directing the interim custody of the vehicle (Maruti  Zen)  be given to the petitioner vide order dated  17.3.2009.  The respondent on approaching the Guwahati High  Court against this order, the hon'ble court squashed the criminal  proceedings  pending   before  the  learned Magistrate. After hearing both sides, the Hon'ble Supreme Court decided on 30th...
7 comments
Read more