STATE OF HIMACHAL PRADESH & ANR. versus M/S. HIMACHAL TECHNO ENGINEERS & ANR.
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[2010] 8 S.C.R. 1025 STATE OF HIMACHAL PRADESH & ANR. v. MIS. HIMACHAL TECHNO ENGINE=Rs & ANR. (Civil Appeal No. 5998 of 2010) JULY 26, 2010 [R.V. RAVEENDRAN AND GYAN SUDHA MISRA, JJ.) Arbitrations and Conciliation Act, 1996 - s. 34 - Arbitration Award - Challenge to - Petition u/s. 34 along with A B the application for condonation of delay of 28 days in filing C application - Dismissal of, since it was filed on 11. 3. 08, beyond the period of three months plus thirty days - On appeal held: Petition filed on 11. 3. 2008 was not barred by limitation - Date of delivery of award on non-working days could not be construed as 'receipt' of award by appellant - D Date of receipt should be taken as 12. 11. 2007 - For calculating three months period, date on which Executive Engineer received the award is to be excluded - Three months would be calculated from 13. 11. 2007 and would expire on 12.2.2008 - Thirty days from 12.2.2008 under the E proviso should be calculated from 13. 2. 2008 and, tiaving regard to the number of days in February, would expire on 13. 3. 2008 - Delay of twenty eight days in filing application ul s. 34 being within the limit of condonable delay, is condoned - Matter is remanded to High Court for consideration afresh F - Limitation Act, 1963 - s. 12- General Clauses Act, 1897 - s. 9. The appellant-State is represented by the Executive Engineer. The appellant entered into a works contract with the respondent. Dispute arose with regard to payment for G extra work. The respondent referred the dispute to the arbitrator. The arbitrator passed an award in favour of the respondent. The peon in the Office of Executive Engineer received the award under postal cover on 10.11.2007- a 1025 H 1026 SUPREME COURT REPORTS [2010] 8 S.C.R. A Government holiday. Next day was a Sunday. The Executive Engineer received the award on 12.11.2007. The appellant filed a petition u/s. 34 of the Arbitration and Conciliation Act, 1996 on 11.3.2008 challenging the arbitration award along with an application for B condonation of 28 days in filing the petition. The High Court dismissed the application as also the petition since it was barred by limitation. Hence the appeal. Allowing the appeal, the Court C HELD: 1.1 When the award is delivered or deposited or left in the office of a party on a non-working day, the date of such physical delivery is not the date of 'receipt' of the award by that party. The fact that the beldar or a watchman was present on a holiday or non-working day D and had received the copy of the award cannot be considered as 'receipt of the award' by the party concerned, for the purposes of s. 31 (5) of the Arbitration and Conciliation Act, 1996. The date of receipt will have to be the next working day. Though the cover containing E the award was delivered to the beldar in the office of the Executive Engineer on 10.11.2007 which was a holiday, the Executive Engineer received the award on 12.11.2007 (Monday), which was the next working day. Therefore, the date of delivery of the award on a holiday (10.11.2007) F could not be construed as 'receipt' of the award by the appellant. The date of receipt therefore should be taken as 12.11.2007 and not 10.11.2007. [Para 7] [1032-G-H; 1033-A-B] Union of India v. Tecco Trichy Engineers & Contractors G 2005 (4) SCC 239 - referred to. 1.2. Section 12 of Limitation Act, 1963 provides for exclusion of time in legal proceedings. Sub-section (1) thereof provides that in computing the period of limitation H for any application, the day from which such period is to STATE OF HIMACHAL PRADESH v. H[MACHAL 1027 TECHNO ENGINEERS be reckoned, shall be excluded. The applicability of s. 12 A to petitions u/s. 34 of the Act is not excluded by the provisions of the Act. Section 9 of General Clauses Act, 1897 provides that in any Central Act, when the word 'from' is used to refer to commencement of time, the first of the days in the period of time shall be excluded. B Therefore, the period of "three months from the date on which the party making that application had received the arbitral award" shall be computed from 13.11.2007. [Para 8] [1033-C-E] 2.1 The High Court held that 'three months' C mentioned in s. 34(3) refers to a period of 90 days. This is erroneous. A 'month' does not refer to a period of thirty days, but refers to the actual period of a calendar month. [Para 9] [1033-F-G] D 2.2 Sub
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