{"id":298671,"date":"2023-08-05T16:00:33","date_gmt":"2023-08-05T10:30:33","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=298671"},"modified":"2023-08-05T11:47:06","modified_gmt":"2023-08-05T06:17:06","slug":"madhya-pradesh-hc-allows-fresh-adjudication-on-limitation-issue-in-arbitration-appeal","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2023\/08\/05\/madhya-pradesh-hc-allows-fresh-adjudication-on-limitation-issue-in-arbitration-appeal\/","title":{"rendered":"Madhya Pradesh High Court allows fresh adjudication on limitation issue in Arbitration appeal"},"content":{"rendered":"
\n

Madhya Pradesh High Court: <\/span>A Single bench comprising of Vivek Rusia,*<\/span> J., while signifying the important filing applications properly, explained the calculation of limitation period under Section 34(3)<\/a> of the Arbitration and Conciliation Act, 1996<\/a> (the Act) in the light of Section 14 of the Limitation Act. The Court reverted back the matter for fresh adjudication on the issue of limitation.<\/p>\n

Brief Facts<\/p>\n

In the instant matter, the appellant, a proprietorship firm engaged in the business of supplying cotton bales and other materials, received a purchase order from the respondent for the supply of 600 cotton bales. The purchase order contained an arbitration clause, stating that all disputes would be settled amicably or referred to arbitration in accordance with the Rules and By-laws of the Cotton Association of India, with the contract subject to Indore jurisdiction.<\/p>\n

The appellant failed to supply the specified quantity of cotton bales within the agreed time and the respondent initiated arbitration proceedings under the Cotton Association of the India rules. The Sole Arbitration was appointed who passed an award in favour of respondent directing the appellant to pay Rs. 18,89,677\/- with interest at 15% per annum.<\/p>\n

The appellant later came to know about the ex-parte award after receiving a notice of execution from the Court and subsequently filed an application to set aside the arbitral award under Section 34<\/a> of the Arbitration and Conciliation Act, 1996<\/a> (the Act) with an application under Section 14 of the Limitation Act. However, the application to set aside the arbitral award was dismissed as time-barred, citing a delay of 4 days beyond the prescribed limitation period. Aggrieved by the impugned award passed by the District Court, appellant preferred the present appeal before this Court challenging the same.<\/p>\n

Contentions<\/p>\n

The appellant contended that they were not aware of the arbitration proceedings and the ex-parte award until they received notice from a Court in Guntur, Andhra Pradesh, where the properties of the appellant are situated.<\/p>\n

Moot Point<\/p>\n

Whether the application filed by the appellant under Section 34<\/a> of the Arbitration and Conciliation Act, 1996<\/a> (the Act) was time-barred or not?<\/p>\n

Court's Observation<\/p>\n

The Court observed the appellant claimed that the letter sent by the Secretary of the Cotton Association of India did not disclose whether the copy of the award had previously been sent to them, raising an issue to be considered by the court regarding the date from which the limitation period should be calculated.<\/p>\n

The Court observed that the date from which the limitation period should be calculated was a disputed fact and should have been properly adjudicated and the trial court had failed to consider this issue.<\/p>\n

The Court emphasized the significance of properly filing two applications, one under Section 14 of the Limitation Act and the other under the proviso to Section 34(3) of the Act, in order to seek relief from the limitation period for setting aside an arbitral award. The Court stated that in the present matter “the appellant was required to file two applications, first u\/s. 14 of the Limitation Act for exclusion of time spent in the proceedings bona fide in the Court without jurisdiction; and another application under the Proviso to sub-section (3) of Section 34 of the Act of 1996 for further extension of one month.”<\/span><\/p>\n

Court's Verdict<\/p>\n

The Court allowed the arbitration appeal and set aside the impugned order of the District Court. The Court remitted the matter back to the District Court for fresh adjudication on the issue of limitation after recording evidence. The Court further ordered the appellant to pay Rs. 10,000 as the cost of litigation to the Sole Arbitrator.<\/p>\n

[Noumla Brothers v. Ruchi World Wide Ltd., 2023 SCC OnLine MP 1916<\/a>, order dated 06-07-2023<\/span>]<\/p>\n

*Judgment by Justice Vivek Rusia<\/span><\/strong><\/p>\n\n

Advocates who appeared in this case:<\/p>\n

Mr. Chetan Jain, Counsel for the Appellant<\/p>\n

Mr. Kshitij Vyas, Counsel for the Respondent No. 1<\/p>\n

Mr. Romesh Dave, Counsel for the Respondent No. 2<\/p>\n

Buy Arbitration and Conciliation Act, 1996   HERE<\/a><\/h3>\n

\"arbitration<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Madhya Pradesh High Court held that the Trial Court failed to properly adjudicate the issue related to calculation of limitation period.<\/p>\n","protected":false},"author":67514,"featured_media":291010,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[3226,59472,3655,7201,60062],"class_list":["post-298671","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-arbitration","tag-justice-vivek-rusia","tag-limitation","tag-madhya-pradesh-high-court","tag-setting-aside-of-arbitral-award"],"yoast_head":"\nMadhya Pradesh High Court allows fresh adjudication on limitation issue in Arbitration appeal | SCC Blog<\/title>\n<meta name=\"description\" content=\"Madhya Pradesh High Court allows fresh adjudication on limitation issue in Arbitration appeal.\" \/>\n<meta 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MP HC explains","author":"Bhumika Indulia","date":"January 28, 2022","format":false,"excerpt":"Madhya Pradesh High Court: The Division Bench of Sheel Nagu and Purushaindra Kumar Kaurav, JJ., while holding that M.P Madhyastham Adhikaran Adhiniyam, 1983 mandates exclusive jurisdiction to Tribunal for settling \u201cworks contract\u201d added that Section 34(2)(b)(i) of the Arbitration and Conciliation Act 1996, provides that an arbitral award would be\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":259555,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/01\/05\/mp-hc-dismissal-of-application-under-s-34-of-arbitration-and-conciliation-act-of-1996-on-ground-of-limitation-will-come-within-the-purview-of-refusing-to-set-aside-an-arbitration-award\/","url_meta":{"origin":298671,"position":3},"title":"MP HC | Dismissal of application under S. 34 of Arbitration and Conciliation Act of 1996 on ground of limitation will come within the purview of refusing to set aside an arbitration award","author":"Editor","date":"January 5, 2022","format":false,"excerpt":"Madhya Pradesh High Court: Vishal Dhagat, J. allowed an arbitration appeal against an impugned order passed by the First ADJ of Balaghat (MP). The facts of the case were that the Court held that limitation for filing application under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":337392,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/12\/17\/mp-high-court-orders-status-quo-on-nawab-of-bhopals-property-declared-as-enemy-property-directs-pataudi-family-to-approach-appellant-authority-scc-times\/","url_meta":{"origin":298671,"position":4},"title":"MP High Court orders status quo on Nawab of Bhopal\u2019s Property declared as \u2018Enemy Property\u2019; directs Pataudi family to approach appellant authority","author":"Ritu","date":"December 17, 2024","format":false,"excerpt":"The controversy stems from the government\u2019s declaration of the Nawab of Bhopal\u2019s properties as enemy property as the Nawab\u2019s elder daughter, Princess Abida Sultan, moved to Pakistan in 1950.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Madhya Pradesh High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/Madhya-Pradesh-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/Madhya-Pradesh-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/Madhya-Pradesh-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/Madhya-Pradesh-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":337615,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/12\/20\/mp-high-court-takes-suo-moto-action-on-compliance-with-awareness-and-monitoring-of-pocso-act-provisions-scc-times\/","url_meta":{"origin":298671,"position":5},"title":"MP High Court takes Suo Moto action on compliance, awareness and monitoring of POCSO Act provisions","author":"Ritu","date":"December 20, 2024","format":false,"excerpt":"\u201cIn most of the cases, we found that the age of the victim\/child\/girl is between 16 to 18 years and the age of the offender is 19 to 22 years. In our opinion, this is a serious issue and threat to the future of the youth of the country.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Madhya Pradesh High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/Madhya-Pradesh-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/Madhya-Pradesh-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/Madhya-Pradesh-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/Madhya-Pradesh-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/298671","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67514"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=298671"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/298671\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/291010"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=298671"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=298671"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=298671"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}