AMRIK SINGH Vs. MAGMA FINCORP LTD

JUDGEMENT

(1.) An application under Section 34 of the Arbitration and Conciliation Act, 1996 (hereafter called "the Act") was filed by the petitioner challenging an award made and published by the arbitrator on 17th December 2009. According to the records, this application was filed on 26th August 2010. Prima facie, it appeared to this court to be barred by limitation. Therefore, I did not admit it when it was moved on 14th September 2010. I asked the parties to file affidavits to ascertain whether the application was filed within time.

(2.) Such an exercise became necessary because of Section 34 of the Act. It says that an application to set aside an award has to be made within three months from the date of its receipt by the party making the application. It can be made within a further period of 30 days on satisfying the court that the applicant had sufficient cause for not making the application within that time, "but not thereafter". Now, it is well settled that once, the period of 30 days after the initial period of three months has expired, the court has no power to condone any further delay under Section 5 of the Limitation Act. The language of the Section is such that this time period is absolute and un-extendable.

(3.) The petitioner is a borrower of money from the respondent No.1. He says in paragraph 8 of the petition that on 28th May 2010 he received "a bunch of papers" from M/s. Sinha & Company, advocates along with a letter dated 24th May 2010, apprising him of an order dated 20th May 2010 passed by this court in Execution Case No.132 of 2010 appointing a receiver to take physical possession of some of his assets. Therefore, time is to run from that date. Hence, the setting aside application was made on time.