Facts
The respondents challenged an arbitral award dated 2 August 2023 under Section 34 of the Arbitration and Conciliation Act, 1996.
Source reference: pp. 3–5, 8The petitioners, who were respondents in that proceeding, objected that the challenge was time-barred.
Source reference: pp. 3–5, 8The award was received on 3 August 2023; applications under Section 33 for correction and an additional award were filed on 31 August 2023 and disposed of on 25 and 27 September 2023, respectively.
Source reference: pp. 3–5, 8The Section 34 petition was filed on 23 February 2024. The Commercial Court held it was within time, prompting this petition under Article 227.
Source reference: pp. 3–5, 8Issues
1. Whether, where a timely request under Section 33 has been made with notice to the other party, limitation under Section 34(3) runs from disposal of that request or from receipt of the corrected award or decision.
Source reference: pp. 6–82. Whether the respondents’ Section 34 petition, filed on 23 February 2024, was within the statutory limitation period.
Source reference: pp. 8–9Law Applied
Section 34(3) of the Arbitration and Conciliation Act, 1996 requires an application to set aside an award to be made within three months of receipt of the award or, where a request under Section 33 has been made, within three months of disposal of that request; the court may allow a further 30 days for sufficient cause, but not thereafter.
Source reference: p. 6Relying on Geojit Financial Services Limited v. Sandeep Gurav, Civil Appeal No. 10970 of 2025 (19 August 2025), the Court held that where a Section 33 request is filed within the prescribed period and with notice to the other party, limitation begins on the date the arbitral tribunal disposes of the request, regardless of whether it grants the requested correction or additional award. The date the party receives the corrected award or disposal decision is immaterial.
Source reference: pp. 6–8Reasoning
The Section 33 applications were filed on 31 August 2023, within the prescribed period and with notice to the opposing parties; they were disposed of by 27 September 2023.
Source reference: pp. 3–5, 8Applying Section 34(3) and Geojit Financial Services, the Court calculated the three-month period from 27 September 2023, expiring on 26 December 2023, with the further 30-day period expiring on 26 January 2024.
Source reference: pp. 4–8Because the Section 34 petition was filed only on 23 February 2024, the Commercial Court’s reliance on receipt of the corrected award to find the petition timely was contrary to the statute and the Supreme Court’s ruling.
Source reference: pp. 8–9Holding
The High Court allowed the writ petition, set aside the Commercial Court’s order dated 4 November 2024, and dismissed Com.A.P. No. 36 of 2024 as barred by limitation.
No order as to costs.
Source reference: p. 9Acts & Sections Cited
2 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.
Arbitration and Conciliation Act, 19962
Original Court PDF
H. NAVANEESH PRASADvsJ MANJUNATH
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