The core issue is when the time limit for challenging an arbitration award begins: from the date a party formally receives notice of the award’s filing or from an earlier date when the party becomes aware of its existence. The Supreme Court overturns previous decisions by lower courts, emphasizing that mere knowledge or notice, even if informal, of the award’s filing is sufficient to start the limitation period, rather than requiring formal written notification. This decision aligns with the intent of speedy dispute resolution through arbitration. The court concludes that the respondents were aware of the award’s filing on an earlier date than they claimed, thus allowing the appellant’s application to have the award made a judgment.
Arbitration Act, 1940, Sections 14(2) and 17 – Limitation Act, 1963, Article 119(b) of the Schedule – Arbitration award – Limitation – Filing of objections – – Whether the time for filing a Section 17 application commences when the party seeking to challenge the award receives a formal notice (18.11.2022) of the making of the award, or from the date such party is aware of the existence of the award? – Application under Section 17 of the Act was filed by the appellant on 10.11.2022 to pronounce the judgment according to the award, was dismissed by the Trial and the High Courts on the ground that the said application is premature as it was made before the expiry of the 30 days period, reckoned from 18.11.2022, when formal notice of the Award is said to have been received by the respondent – Held that the respondent was fully aware of the making of the Award (by 21.09.2022) – Law does not require a formal notice of the making of the Award, as against knowledge/notice of the Award – District Court and the High Court fell into error that the limitation for filing objections was still running when the appellant filed an application under Section 17 of the Act on 10.11.2022 – The formal date of notice of filing of the award on the respondents, that is, 18.11.2022 holds no significance as they were made sufficiently aware of the award ’s filing on 21.09.2022 itself – The court directing the respondents to clear the fees was a clear intimation about its filing – Holding otherwise would not only be departing from precedents of this Court, but also allowing the respondents to take advantage of their own inaction – Hence, the limitation is to be treated as expired on 20.10.2022, and the appellant’s application seeking pronouncement of judgment in terms of the award was valid and well beyond the period for filing objections to the award.
(Para 1 and 19)
Krishna Devi @ Sabitri Devi (Rani) M/S … V. Union Of India
Supreme Court: 2025 INSC 24: (DoJ 03-01-2025)