Application U/S. 34 Of The Arbitration & Conciliation Act Not To Be Dismissed For Non-filing Of Certified Copy Of Arbitral Award If Explanation Provided: Allahabad High Court
The Allahabad High Court bench, comprising Chief Justice Arun Bhansali and Justice Vikas Budhwar has observed that if a certified/signed copy of the award cannot be obtained and filed with an application under Section 34 of the Arbitration and Conciliation Act, 1966, filing a copy of the award along with an explanation would be an appropriate exercise.Background FactsThe appellant filed...
The Allahabad High Court bench, comprising Chief Justice Arun Bhansali and Justice Vikas Budhwar has observed that if a certified/signed copy of the award cannot be obtained and filed with an application under Section 34 of the Arbitration and Conciliation Act, 1966, filing a copy of the award along with an explanation would be an appropriate exercise.
Background Facts
The appellant filed an application under Section 34 of the Arbitration and Conciliation Act, 1996, aggrieved by an arbitral award dated 20.10.2023. In the Statement of Truth filed along with the application, it was indicated that the Appellant could not obtain a certified copy of the arbitral award as the address of the Arbitrator was not operational. The Appellant had to rely on a copy of the signed copy of the arbitral award received via post.
The office of the Commercial Court objected to non filing of the signed copy of the award. The Commercial Court dismissed the application, holding that under Section 31(5) of the Act, an Arbitrator must serve a copy of the signed award to the party and in the absence thereof, the application under Section 34 of the Act was not maintainable.
The appellant filed the appeal under Section 37 of the Act against the Commercial Court's order dated 29.06.2024.
Observations:
The High Court observed that in the absence of any counter affidavit or objections from the respondents, the Commercial Court was not justified in dismissing the Section 34 application due to non filing of a certified copy of the Award.
The court noted that under Section 31(5) of the Act, the Arbitrator is required to supply a signed award to the parties, and in an application under Section 34 of the Act, the said signed copy must be annexed. However, if a signed copy of the Award cannot be filed with an application under Section 34, filing a copy along with an explanation would be an appropriate exercise. In case the Commercial Court comes to a different conclusion, findings based on material available on record must be recorded.
The court thus allowed the appeal and set aside aside the order passed by the Commercial Court. The court remanded the matter back to the Commercial Court.
Case Title: Ram Babu Vishkarma v. M/S Shriram Finance Ltd and Anr.
Neutral Citation: 2024:AHC:159310-DB
Case No.: ARPL(A) 382 of 2024
Date of Order: 30.09.2024