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2005 (3) TMI 741

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..... ervice of notice on the Chief Engineer on 19.3.2001 would be the starting point of limitation to challenge the award in the Court. The learned Single Judge of the High Court as also the Division Bench have erred in holding the application under Section 34 filed on behalf of the appellant as having been filed beyond a period of 3 months and 30 days within the meaning of sub-Section (3) of Section 34. There was a delay of 27 days only and not of 34 days as held by the High Court. In the facts and circumstances of the case, the delay in filing the application deserves to be condoned and the application under sub-Section (1) of Section 34 of the Act filed on behalf of the appellant deserves to be heard and decided on merits. The appeal is al .....

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..... nd Conciliation Act, 1996 (hereinafter 'the Act' for short). An application seeking condonation of delay under sub- Section (3) of Section 34 was also filed. The delay sought to be condoned was of 27 days only based on an assumption that the copy of the award was received on 19.3.2001. The application for condonation of delay was contested by respondent No. 1 on the ground that arbitral award was delivered on 12.3.2001 and calculated from that date there was a delay of 34 days in filing the application beyond the period of limitation prescribed by sub- Section (3) of Section 34 of the Act while the proviso appended to the said provision does not permit any delay beyond the period of 30 days being condoned by the Court. The objection .....

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..... after. Form and contents of arbitral award are provided by Section 31 of the Act. The arbitral award drawn up in the manner prescribed by Section 31 of the Act has to be signed and dated. According to sub-Section (5), after the arbitral award is made, a signed copy shall be delivered to each party . The term party is defined by clause (h) of Section 2 of the Act as meaning 'a party to an arbitration agreement'. The definition is to be read as given unless the context otherwise requires. Under sub-Section (3) of Section 34 the limitation of 3 months commences from the date on which the party making that application had received the arbitral award. We have to see what is the meaning to be assigned to the term party and par .....

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..... ctual and legal aspects of the questions involved in the arbitration proceedings. It is also a known fact and Court can take judicial notice of it that there are several arbitration proceedings pending consideration concerning affairs of the Railways before arbitration. The General Manager, with executive work load of entire Division cannot be expected to know all the niceties of the case pending before the arbitral tribunal or for that matter the arbitral award itself and to take a decision as to whether the arbitral award deserves challenge, without proper assistance of the Departmental Head. General Manager, being the head of the Division, at best is only expected to take final decision whether the arbitral award is to be challenged or n .....

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..... the right to exercise those rights on expiry of the prescribed period of limitation which would be calculated from that date, the delivery of the copy of award by the tribunal and the receipt thereof by each party constitutes an important stage in the arbitral proceedings. In the context of a huge organization like Railways, the copy of the award has to be received by the person who has knowledge of the proceedings and who would be the best person to understand and appreciate the arbitral award and also to take a decision in the matter of moving an application under sub- Section (1) or (5) of Section 33 or under sub-Section (1) of Section 34. In the present case, the Chief Engineer had signed the agreement on behalf of Union of India .....

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..... ge the award in the Court. We cannot be oblivious of the fact of impersonal approach in the Government departments and organizations like Railways. In the very nature of the working of Government departments a decision is not taken unless the papers have reached the person concerned and then an approval, if required, of the competent authority or official above has been obtained. All this could not have taken place unless the Chief Engineer had received the copy of the award when only the delivery of the award within the meaning of sub-Section (5) of Section 31 shall be deemed to have taken place. The learned Single Judge of the High Court as also the Division Bench have erred in holding the application under Section 34 filed on behal .....

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