TMI Blog2011 (2) TMI 1364X X X X Extracts X X X X X X X X Extracts X X X X ..... e award is delivered to him by the arbitrator? This is the short question that arises for consideration in this appeal. 3. The material facts of the case are brief and admitted by both sides. These may be stated thus. On March 20, 2003 the arbitrator gave a copy of the award, signed by him, to the claimant (the respondent) in whose favour the award was made. No copy of the award was, however, given to the appellant, the other party to the proceedings, apparently because the appellant had failed to pay the costs of arbitration. The respondent submitted a copy of the award in the office of the Executive Engineer (appellant no.4) on March 29, 2003, claiming payment in terms of the award. On April 16, 2003, the Executive Engineer submitted a proposal to challenge the award before the Chief Engineer, and the Financial Advisor and Joint Secretary. The respondent sent a reminder to the Chief Engineer on June 13, 2003, for payment of the money awarded to him by the arbitrator and a second reminder to the Secretary and Special Commissioner on January 8, 2004. The Executive Engineer by his letter dated January 15, 2004, acknowledged all the three letters of the claimant and infor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent to them by the claimant-respondent to whom the arbitrator had given a copy of the award duly signed by him. In support of the submission that the period of limitation prescribed under section 34(3) of the Act would start running from the date they received a copy of the award duly signed by the arbitrator, they also relied upon section 31(5) read with section 34(3) of the Act. They also relied upon a decision of this Court in Union of India v. Tecco Trichy Engineers Contractors, (2005) 4 SCC 239. 8. On behalf the claimant-respondent it was pointed out that a copy of the award was undeniably received in the office of the Executive Engineer on March 29, 2003 and as a matter of fact the receipt of the copy of the award on that date was expressly acknowledged in the letter of the Executive Engineer dated January 15, 2004 in which he told him that the appellants had decided to challenge the award. The respondent further pointed out that it was only on the basis of the copy of the award received from him that the office communications and deliberations were made and finally on December 16, 2003 the decision was taken to challenge the award when the matter had already become barr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to blame only themselves. In the instant matter, it cannot be said that there is non compliance of sub-section (5) of Section 31 of the Act of 1996. There is sufficient compliance of the provisions of Section 31(5), as admittedly, appellants received copy of the award in the month of April, 2003. Appellants thereafter did not take steps in respect of raising challenge to the award and allowed the matter to remain in cold storage. The delay occasioned in presenting the application is essentially because of the lapses committed by the appellants only. 10. The appellants are now before this court by grant of special leave. The two provisions of the Arbitration and Conciliation Act, 1996, relevant to answer the question raised in the case are sections 31 and 34. Section 31 deals with `form and contents of arbitral award; and in so far as relevant for the present provides as follows: 31. Form and contents of arbitral award.- (1) An arbitral award shall be made in writing and shall be signed by the members of the arbitral tribunal. (2) xxxxxxxxxxx (3) xxxxxxxxxxx (4) xxxxxxxxxxx (5) After the arbitral award is made, a signed copy shall be delivered to each party. (6), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formality. It is a matter of substance. It is only after the stage under Section 31 has passed that the stage of termination of arbitral proceedings within the meaning of Section 32 of the Act arises. The delivery of arbitral award to the party, to be effective, has to be received by the party. This delivery by the Arbitral Tribunal and receipt by the party of the award sets in motion several periods of limitation such as an application for correction and interpretation of an award within 30 days under Section 33(1), an application for making an additional award under Section 33(4) and an application for setting aside an award under Section 34(3) and so on. As this delivery of the copy of award has the effect of conferring certain rights on the party as also bringing to an end 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. (emphasis added ) 13. The highlighted portion of the judgment extracted above, leaves no room for doubt that the period of limi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fifteen days from the date on which the order is communicated to him, present an appeal in writing to the Commissioner of the division . Sec. 18(1) of Bihar Act III of 1949 is couched in different language. In our opinion, Sec. 18(1) implies that the Controller is bound, as a matter of law, to send a written copy of his order to the person aggrieved, and limitation for filing an appeal does not start unless and until the copy of the order is sent. In the present case it is not disputed that no copy of the order was sent to respondent no.4. It is true that the respondent himself applied for a copy of the order on the 11th December, 1959, and obtained a copy on the 14th December, 1959. In any event, therefore, limitation will not start running against respondent no.4 under Sec. 18(1) of the Act till the 14th December, 1959, and as the appeal was filed on the 26th December, 1959, there is no bar of limitation in this case.... (emphasis added) 15. We are in respectful agreement with the view taken by the Patna High Court in the case of Dr. Sheo Shankar Sahay. 16. In light of the discussions made above we find the impugned order of the Bombay High Court unsustainable. The Hig ..... 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