Marg Limited Vs Srei Equipment Finance Limited (Calcutta High Court)
Calcutta High Court held that application for setting aside of an award under section 34 of the Arbitration and Conciliation Act, 1996 cannot be made after three months from the date of arbitral award. Thus, application made after the time period is barred by limitation.
Facts- The brief point which has arisen in the present case is whether the present application under Section 34 of the Arbitration and Conciliation Act, 1996 is barred by limitation.
Notably, the respondent argues that Section 34 (3) of the 1996, Act stipulates that an application for setting aside of an award may not be made after three months have elapsed from the date on which the party making that application had received the arbitral award. The proviso thereto states that if the Court is satisfied that the applicant was prevented by sufficient cause from making the application within the said period of three months, it may entertain the application within a further period of thirty days, but not thereafter.
Conclusion- Section 34(3) provides that an application for setting aside may not be made after three months. The proviso thereto carves out an exception by leaving it to the discretion of the Court, subject to satisfaction in respect of sufficient cause for the delay, to accept the application for a further period of thirty days, but not thereafter.
