03 (1) (b)

Deemed delivery of Arbitral Award under Section 31(5) of Arbitration and Conciliation Act, 1996 can be presumed by the Court by applying Section 3(1)(b) – Avdhesh Mittal Vs. Deepak Vig – Delhi High Court

Hon’ble High Court held that:
(i) In this manner, Section 3 would cover written communications via which the arbitral awards are ‘delivered’ to the parties under Section 31(5).
(ii) Since ‘delivery’ of arbitral award is a substantive right of the parties to the arbitration, it cannot be undermined by a cavalier approach. A party claiming deemed delivery under Section 31(5) read with Section 3(1)(b), must establish beyond doubt that there is no reason to assume that the service could not have been effected, despite complying with the conditions prescribed under Section 3(1)(b).
(iii) The presumption of deemed service drawn under Section 3 of the A&C Act is not cast in stone that it can’t be erased. It is easily shakeable or rebuttable since delivery of arbitral award under Section 31(5) is a substantive right that the parties enjoy. If a party against whom presumption is drawn is able to establish that the written communication could not have been delivered even after fulfilling the conditions under Section 3, the presumption stands rebutted.

Deemed delivery of Arbitral Award under Section 31(5) of Arbitration and Conciliation Act, 1996 can be presumed by the Court by applying Section 3(1)(b) – Avdhesh Mittal Vs. Deepak Vig – Delhi High Court Read Post »

There is an utmost need and an irrefutable statutory obligation on Award holder to show delivery of a signed copy of arbitral award as contemplated in Sec. 31(5) of Arbitration and Conciliation Act, 1996 | Onus shifts on a third party to show proof of delivery as opposed to Award Debtor (or any other persons) receiving the written communication – Ashok Kumar Chaudhary @ Ashok Kumar Ram Sabadh Chaudhary and Anr. Vs. Kotak Mahindra Bank Ltd. – Calcutta High Court

Hon’ble Calcutta High Court held that:
(i) The mandatory nature of the requirement would be evident from the word ‘shall’ in the Sec. 31(5).
(ii) The 1996 Act is a code unto itself and the deeming fiction contained in section 3(1)(b) can only be taken recourse to if reasonable inquiry for delivery of the communication is made to the place specifically referred to in section 3(1)(a).
(iii) The provisions of the 1996 Act, being a special statute and a complete code, must be given precedence over section 27 of the General Clauses Act.
(iv) The Act contains a clear mandate as to delivery of an award under section 31(5) of the said Act.
(v) The onus in this respect is entirely on the award-holder since the award-holder must present irrefutable evidence in terms of delivery of the award under section 31(5) as well as of the deeming fiction under section 3 for non-suiting the award-debtor.
(vi) The mandate of section 31(5) cannot be tailored to suit the particular facts of each case.

There is an utmost need and an irrefutable statutory obligation on Award holder to show delivery of a signed copy of arbitral award as contemplated in Sec. 31(5) of Arbitration and Conciliation Act, 1996 | Onus shifts on a third party to show proof of delivery as opposed to Award Debtor (or any other persons) receiving the written communication – Ashok Kumar Chaudhary @ Ashok Kumar Ram Sabadh Chaudhary and Anr. Vs. Kotak Mahindra Bank Ltd. – Calcutta High Court Read Post »

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