Application under Section 34(3) of the Arbitration and Conciliation Act, 1996 has to be made within a period of three months from receiving an arbitral award or within a further period of thirty days from the expiry of three months but not thereafter – Nagrik Sahakari Rugnalaya and Research Center Ltd. Vs. Arneja Nagrik Hospital Pvt. Ltd. – Bombay High Court
April 19, 2023
Hon’ble High Court held that under Section 34(3) of the Act of 1996, an application for setting aside an award is required to be made within a period of three months from the date on which the party making such application had received arbitral award. By the proviso to Section 34(3) of the Act of 1996, on indicating sufficient cause for being prevented from making such application within a period of three months, the Court has jurisdiction to entertain such application within a further period of thirty days but not thereafter. Thus application under Section 34(3) of the Act of 1996 has to be made within a period of three months from receiving an arbitral award or within a further period of thirty days from the expiry of three months but not thereafter. Perusal of the impugned order indicates that the learned District Judge has equated the period of three months with ninety days and has thereafter found that the application under Section 34 of the Act of 1996 as filed on 30.06.2022 was beyond the period of one hundred and twenty days. Since Section 34(3) of the Act of 1996 specifically prescribes the period of three months and not ninety days there would be no basis to hold that the application under Section 34(3) of the Act of 1996 read with the proviso has to be filed within one hundred and twenty days. Such application has to be filed within a period of three months and subject to indicating sufficient cause for not making such application within a period of three months but within a period of thirty days the same can be entertained.