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1995 DIGILAW 546 (MP)

Northern Coalfields Ltd. v. Coalfields & Power Plant E. S. Ltd.

1995-07-07

N.P.SINGH

body1995
JUDGMENT This application in revision is directed against the order dated 13.3.1995 passed by the District Judge, Sidhi in Civil Suit No. I-B/94, dismissing the application of the applicant dated 12.12.1994 for grant of time to file objection to the award. The facts giving rise to this revision are that this Court in M.P. No. 3157/92 by order dated 17.11.1992 directed the applicant to appoint an arbitrator within 15 days to settle the dispute between the parties on the agreement of contract entered into between them and in pursuance of this order, the applicant appointed Shri K.S. Singh, its Chief Engineer as the sole arbitrator on 1.12.1992 to settle the dispute of claim raised by the non-applicant. The arbitrator Shri K.S. Singh gave his award and handed over one copy of the award to the applicant and filed a copy of the same in the Court of District Judge at Sidhi on 20.9.1994 to make the award the rule of the Court. Pursuant to the notice of the District Judge, both the parties, as well as the arbitrator, appeared in the Court of the District Judge on 18.10.1994 on which date the arbitrator filed the original copy of the award in the Court in presence of the counsel of both sides. Despite several adjournments granted to the applicant to file objection to the award, he failed to file any objection within 30 days from the date of filing the award in the Court. On 12.12.1994 the applicant moved an application before the District Judge that he was not aware of the contents of the award, as the sealed envelope containing the original award was not opened in presence of the counsel of the applicant and he prayed for time to file objection to the award, which prayer did not find favour with the District Judge and he rejected the application by the impugned order. Shri P.S. Nair, learned counsel for the applicant, has contended that the period of 30 days for filing the objection to the award would be computed from the date when he became aware of the contents of the award and not from the date of the filing of the award in the Court. The contention of Shri Nair is not well founded. The contention of Shri Nair is not well founded. It is settled by a catena of decisions of the Apex Court that the limitation prescribed under Article 119 (a) of the Limitation Act for filing objection to the award is 30 days from the date of service of notice of filing of the award in Court. The communication by the Court to the parties or their counsel of the information that an award has been filed in Court is sufficient compliance with the requirement of sub-section (2) of section 14 of the Arbitration Act. The Apex Court in a recent decision in the case of M/s. Bharat Cooking Coal Ltd. v. C.K Ahuja & another (1995 AIR SCW 1419) reiterated the ratio in the case of Food Corporation of India v. E. Kuttappan ( AIR 1993 SC 2629 ) and held that : "the obligation of filing the award in Court is a legal imperative on the arbitrator and when the award was filed in Court and the parties were aware of such filing of the award in Court, the limitation to file objection would run from the date of filing the award being made known to the parties, and not from-any subsequent date. In the instant case, admittedly the award was filed in the Court of the District Judge on 18.10.1994 in the presence of the counsel of the applicant. The applicant, therefore, will be deemed to have knowledge of the award. The contention of Shri Nair that the applicant became aware of the award on the date when the sealed envelope was opened in the Court cannot be accepted, in view of the fact that a copy of the award had already been sent to the applicant by the arbitrator after giving his award. Therefore, limitation under Article 119 (a) of the Limitation Act for filing the objection to the award will run from the date of filing of the award in the Court in presence of the counsel for both sides and not from the date when the sealed envelope containing the award was opened in the Court. In view of the aforesaid, I do not find any merit in this revision. It is dismissed accordingly.