Delhi High Court

Service of signed arbitral award upon counsel constitutes valid delivery under Section 31(5) triggering limitation period.

Union Of India vs M/S Isc Yug

Delhi High CourtJUDGMENT: July 06, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Petitioner (Union of India) awarded a tender for railway construction to the Respondent. Disputes arose, leading to arbitration and a common Award dated 22.09.2023.

Source reference: para. 6(a)-(c)

The Petitioner’s counsel collected a signed copy of the Award on 09.10.2023.

Source reference: para. 6(d)

After the Respondent filed execution proceedings in February 2024, the Petitioner applied to DIAC for a "copy to copy" of the Award, receiving it on 18.07.2024.

Source reference: para. 6(e)-(f)

The Petitioner filed Section 34 petitions thereafter, arguing that receipt by counsel was unauthorized and that limitation should run from the July 2024 receipt.

Source reference: para. 13-16
02

Issues

1. Whether the service of an arbitral award upon the counsel of a party constitutes valid "receipt" by the party under Section 31(5) to trigger the limitation period under Section 34(3) of the A&C Act.

Source reference: para. 4, 18

2. Whether the Petitioner’s Section 34 petitions were barred by limitation.

Source reference: para. 4, 37
03

Law Applied

Section 34(3) of the Arbitration and Conciliation Act, 1996, which mandates a three-month period for challenging an award, with a maximum 30-day discretionary extension via the proviso.

Source reference: para. 19

The phrase "but not thereafter" in Section 34(3) expressly excludes Section 5 of the Limitation Act as held in Union of India v. Popular Construction Co.

Source reference: para. 20

The principle of strict adherence to timelines for filing objections as established in Simplex Infrastructure Ltd. v. Union of India.

Source reference: para. 21

Interpretation of Section 31(5) of the A&C Act regarding the necessity of delivery of a signed copy of the award to the party.

Source reference: para. 32
04

Reasoning

The Court held that an advocate acts as a "recognized agent" of a party, and receipt of the signed Award by the counsel on 09.10.2023 was a valid delivery under Section 31(5).

Source reference: para. 26

The Court noted the Petitioner’s failure to plead that the counsel’s authority was specifically curtailed at the time of receipt.

Source reference: para. 24-25

A self-serving affidavit filed two years later was deemed insufficient to displace the contemporaneous record.

Source reference: para. 25, 28

The Petitioner's passivity despite knowing of the Award's pronouncement on 22.09.2023 demonstrated a lack of diligence; a party cannot indefinitely postpone limitation by choosing to obtain a fresh copy only after execution proceedings begin.

Source reference: para. 30-31, 35
05

Holding

The Court answered that receipt of the signed Award by the Petitioner’s counsel on 09.10.2023 triggered the limitation.

The Section 34 petitions were "hopelessly barred by limitation" as they were filed beyond the maximum 120-day outer limit; both petitions and all pending applications were dismissed.

Source reference: para. 37, 38-39
Delhi High Court

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Union Of IndiavsM/S Isc Yug

Delhi High Court · July 06, 2026

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