UNION OF INDIA Vs. KANHAIYALAL

JUDGEMENT

(1.) IN this appeal, the questions of adjudication that arise between the parties are whether the objection filed by the appellant on 27-11-1995, was well within the period of limitation of 30 days, on which date, the arbitrator filed the original award and the appellant had filed the objection to it and whether the application filed by the appellant on 7-10-1995 along with the photocopy of the award duly signed by the arbitrator, could be construed as filing of the original award by the arbitrator or on his behalf, as contemplated under provisions of Section 14 (2) of the Arbitration Act, 1940 (for short, 'the Act') as also whether 7-10-1995 could be considered as the date of issuance of notice to the parties for filing of their objection within a period of limitation of 30 days.

(2.) TO resolve the aforesaid dispute, facts in brief are required to be narrated that:-The appellant/union of India, through the Chief Engineer, Jabalpur filed an application under Section 14 of the Act before the Additional District Judge, Indore on 7-10-1995, wherein it is stated that final award was passed by the arbitrator/respondent No. 2 on 18th September, 1995, photocopy of which was filed along with the application, simultaneously, prayer was made in Paragraph 7 of the application for issuance of direction to produce original award in the Court by respondent No. 2/arbitrator. The appellant has also specifically stated that it reserves its right to file objection after production of the original award in Court, so in brief the appellant has prayed for issuance of direction to the arbitrator for filing of the award and after receiving the objection from rival parties to make the award rule of the Court. The claim was made for Rs. 22,86,738. 77 whereas the award was passed for Rs. 34,73,158. 77.

(3.) RESPONDENT No. 1 M/s. Kanhaiyalal and Co. , submitted its objection/ reply on 15-3-1996 contending that the appellant had filed an application on 7-10-1995, in which it has been stated that the award was filed on 18-9-1995 and the copy of the same was filed along with the said application. He has also prayed for making the award as rule of the Court as he was in possession of the copy of the award. Hence, he could not have any right to file further objection in that regard. It has also been stated in the application that the objection filed by the appellant on 27-11-1995, was beyond the period of 30 days limitation because it was having knowledge and also copy of the award, which was filed by it on 7-10-1995. So his further objection filed on 27-11-1995 was beyond the period of limitation of 30 days and the same could not be considered. He also submitted that the appellant is also not entitled for condonation or relaxation in limitation under the provisions of the Limitation Act. Respondent No. 2 has also submitted in his application for reserving his right to file detail reply and prayed for dismissal of the objection filed by the appellant. He also prayed for passing the order making the award as rule of the Court and preparation of the decree in pursuance thereof.