STATE OF JAMMU AND KASHMIR Vs. SAT PAUL

JUDGEMENT

(1.) MR. S. P. Gupta, learned counsel appearing for the respondents Sat Paul and others submits that the application for setting aside the award is time barred. According to him, the period of 30 days of limitation commences from the date the parties have the notice of the announcement of the award. MR. Gupta' submission is that the notice of the filing of the award from the court is immaterial and that if a party has the notice of the passing of the award and he waits for the award to be filed in the court, receive the notice of the filing of the award from the court and then files an application within 30 days thereafter, the application shall be deemed to be time barred. In support of his contention, he has relied upon a judgment of the apex court in the case of Indian Rayon Corpn. Ltd. v. Raunaq and Co. Pvt. Ltd. reported in AIR 1988 SC 2054.

(2.) AFTER hearing the learned counsel for the parties I hold that the contention of Mr. Gupta is not correct. The plain meaning of Article 158 of the III Division in the Ist. Schedule to the Limitation Act leaves no one in any doubt that the period of 30 days prescribed for filing an application for setting aside the award commences from the date of service of the notice of filing of the award in the court. As to when was the award passed by the arbitrator or as to when did the parties have the notice of the passing of the award is wholly immaterial and irrelevant because the occasion for setting aside the award arises only when it is filed in the court for being made a rule of the court. If an award is not filed in the court, even though it might have been passed by the arbitrator, there is no obligation cast upon a party to file an application for setting it aside because, unless an award becomes rule of the court, a decree is passed in terms thereof, neither it operates against any party nor can be enforced in the eye of law. The period of limitation, therefore, commences only from the date the party either receives the notice from the court of the filing of the award in the court or actually has such a notice. The petition, therefore, cannot be held to be time barred and in the light of averments made by Mr. Gupta, there is no need to frame an issue for this purpose.

(3.) THE petitioners are directed to file affidavits by way of evidence within three months whereafter respondents may file their affidavits within one month.