LexTHE STATE OF WEST BENGAL REPRESENTED THROUGH THE SECRETARY & ORS. versus RAJPATH CONTRACTORS AND ENGINEERS LTD.
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[2024] 7 S.C.R. 1 : 2024 INSC 477 The State of West Bengal represented through the Secretary & Ors. v. Rajpath Contractors and Engineers Ltd. (Civil Appeal No. 7426 of 2023) 08 July 2024 [Abhay S. Oka* and Pankaj Mithal, JJ.] Issue for Consideration Issue arose as regards correctness of the order passed by the High Court dismissing the petition u/s. 34 of the Arbitration and Conciliation Act, holding that it was not filed within the period specified under sub-section (3) of s. 34 of the Act. Headnotes† Arbitration and Conciliation Act, 1996 – s. 34 – Application for setting aside arbitral awards – Period of limitation for filing petition u/s. 34 – On facts, petition u/s. 34 filed by the appellant challenging the arbitral award – Dismissed by the High Court, holding that it was not filed within the period specified under sub-section (3) of s. 34 – Correctness: Held: Period of limitation for filing a petition u/s. 34 will have to be reckoned from the day when the appellants received the award, i.e. 30th June 2022 – In view of s. 12(1) of the Limitation Act, the day from which the limitation period is to be reckoned must be excluded, as such 30th June 2022 will have to be excluded while computing the limitation period – Thus, in effect, the period of limitation, started running on 1st July 2022 – Period of limitation is of three months and not ninety days – Thus, from the starting point of 1st July 2022, the last day of the period of three months would be 30th September 2022 – Pooja vacation started on 1st October 2022 – Three months provided by way of limitation expired a day before the commencement of the pooja vacation – Furthermore, the prescribed period within the meaning of s. 4 of the Limitation Act ended on 30th September 2022 – Thus, the appellants are not entitled to take benefit of s. 4 – As per the proviso to sub-section (3) of s. 34, the period of limitation could have been extended by a maximum period of 30 days – Maximum period of 30 days * Author 2 [2024] 7 S.C.R. Digital Supreme Court Reports expired on 30th October 2022 – Petition was filed on 31st October 2022 – Thus, the High Court was right in holding that the petition u/s. 34 was not filed within the period specified under sub-section (3) of s. 34 of the Act. [Paras 6, 7, 10,11] Case Law Cited State of Himachal Pradesh and Another v. Himachal Techno Engineers and Another [2010] 8 SCR 1025 : (2010) 12 SCC 210; Assam Urban Water Supply & Sewerage Board v. Subash Projects & Mktg. Ltd. [2012] 1 SCR 403 : (2012) 2 SCC 624; Union of India v. Popular Construction Co. [2001] Supp. 3 SCR 619 : (2001) 8 SCC 470 – referred to. List of Acts Arbitration and Conciliation Act, 1996; Limitation Act of 1963; Constitution of India; General Clauses Act, 1897. List of Keywords Arbitral awards; Period of limitation; Limitation period to be reckoned. Case Arising From CIVIL APPELLATE JURISDICTION: Civil Appeal No.7426 of 2023 From the Judgment and Order dated 04.05.2023 of the High Court of Calcutta in AP No. 737 of 2022 Appearances for Parties Ms. Madhumita Bhattacharjee, Ms. Urmila Kar Purkayasthe, Ms. Srija Choudhury, Advs. for the Appellants. Saurav Agrawal, Priyankar Saha, Sarad Kumar Singhania, Mrs. Rashmi Singhania, Anshuman Choudhary, Advs. for the Respondent. Judgment / Order of the Supreme Court Judgment Abhay S. Oka, J. FACTUAL ASPECTS 1. The first appellant – the State of West Bengal appointed the respondent as a contractor for the construction of a bridge. As there [2024] 7 S.C.R. 3 The State of West Bengal represented through the Secretary & Ors. v. Rajpath Contractors and Engineers Ltd. was a dispute between the parties, the respondent invoked the arbitration clause in the contract, and a sole arbitrator was appointed. On 30th June 2022, the Arbitral Tribunal passed an award directing the appellants to pay a sum of Rs.2,11,67,054.00 (Two Crores Eleven Lakhs Sixty-Seven Thousand Fifty-Four Rupees Only) to the respondent with interest thereon, as directed. The counter-claim made by the appellants was dismissed. The appellants received a copy of the award on the same day. The High Court of Judicature at Calcutta was closed for pooja vacation from 1st October 2022 to 30th October 2022 (both days inclusive). On 31st October 2022, the appellants filed a petition under Section 34 of the Arbitration and Conciliation Act, 1996 (for short, ‘the Arbitration Act’) to challenge the award. By the impugned ord
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