Holding

Section 17 of the Limitation Act is expressly excluded and does not apply to the limitation period under Section 34(3) of the Arbitration Act; the period begins on receipt of the award and cannot be extended beyond three months plus thirty days even in cases of fraud.

Summary

The parties, heirs of a deceased businessman, disputed the division of his properties and resolved the matter by arbitration, which resulted in an award on 18 February 2010 that was received on 21 February 2010. The respondents filed an application under Section 34(3) of the Arbitration and Conciliation Act, 1996 to set aside the award 236 days later, seeking condonation of delay under Section 5 of the Limitation Act and arguing that Section 17 of the Limitation Act should apply because of alleged fraud by the appellants. The trial court dismissed the condonation, the High Court remanded the issue of Section 17’s applicability, and the Supreme Court held that Section 34(3) contains its own self‑contained limitation period that starts on receipt of the award and is not subject to the deferment provisions of Section 17. Fraud does not extend the period, and the 30‑day condonation is the outer limit. Consequently, the High Court’s order and the condonation were set aside and the appeals were allowed.

Issues considered

Whether Section 17 of the Limitation Act, 1963 applies to determine the limitation period for filing an application under Section 34(3) of the Arbitration and Conciliation Act, 1996.
Whether fraud or concealment of the award can extend the limitation period prescribed in Section 34(3).
Whether Section 5 of the Limitation Act can be invoked to condone delay beyond the three‑month period plus thirty days for a Section 34 application.
Whether the express exclusion principle under Section 29(2) of the Limitation Act bars the application of Section 17 to Section 34(3).

Legislation cited

Arbitration and Conciliation Act, 1996s. 29, s. 33, s. 34(3), s. 36
Code of Civil Procedure, 1908s. 5
Limitation Act, 1963s. 17, s. 4-24, s. 5, s. 9

Subjects

ArbitrationLimitation ActSection 34(3)Section 17FraudCondonation of delayArbitral awardExpress exclusionSpeedy justice

Judgment

[2018] 12 S.C.R. 143 143

P. RADHA BAI AND ORS. A
v.
P. ASHOK KUMAR AND ANR.
(Civil Appeal Nos. 7710-7713 of 2013)
SEPTEMBER 26, 2018 B
[N. V. RAMANA AND S. ABDUL NAZEER, JJ.]
Limitation Act, 1963– s.17– Application of– If excluded while
determining the limitation period u/s.34(3) of the 1996 Act – Disputes
between the appellants and respondents over division of properties
C
left behind by their predecessor-in-interest – Arbitration – Arbitral
award – Thereafter, the appellants, allegedly in bad faith, entered
into a Memorandum of Understanding (MoU) with the respondents
agreeing to give certain additional properties to respondent no.1 –
MoU contemplated for execution of Gift Deeds and Release Deeds
by appellants in favour of respondent no.1 – However, the appellants D
delayed the execution of the Deeds and in the meanwhile, the three-
month period and the extended period of 30 days for challenging
the Award u/s.34(3) of the 1996 Act expired – Respondents filed
application u/s.34(3) of the 1996 Act for setting aside the Award
alongwith application seeking condonation of delay caused on
E
account of alleged fraud played on them – Application for
condonation of delay dismissed– In revision petitions filed by the
respondents, High Court remanded the matter to the trial court
concerning the applicability of s.17, Limitation Act in an application
u/s.34 of the 1996 Act – Held: Once the party has received the
Award, the limitation period u/s.34(3), 1996 Act commences – s.17 F
of the Limitation Act would not come to the rescue of such objecting
party – In the present case, the respondents had a right to challenge
the Award u/s. 34 the moment they received it – Respondents received
the Award on 21.02.2010 – Once the respondents received the Award,
the time u/s.34(3) commenced – Merely because the appellants had
G
committed some fraud, it would not affect the respondents right to
challenge the Award if the facts entitling the filing of s.34 Application
was within their knowledge – It was incumbent on the respondents
to have instituted an application u/s.34 challenging an award –
Judgment of the High Court set aside – Order condoning the delay
H
143
144 SUPREME COURT REPORTS [2018] 12 S.C.R.

A in filing the objections set aside – Arbitration and Conciliation Act,
1996 – ss.29, 33, 34(3) and 36.
Arbitration and Conciliation Act, 1996 – s.29 – Purport of –
Discussed.
Words & Phrases – “the period of limitation shall not begin
B to run”, “may not be made”, “express exclusion” in context of
s.17, Limitation Act and ss.34(3) and 29(2) of the 1996 Act –
Meaning of – Limitation Act, 1963 – s.17 – Arbitration and
Conciliation Act, 1996 – s.34(3) & 29(2).
Allowing the appeals, the Court
C HELD: 1.1 Section 29(2), Arbitration and Conciliation Act,
1996 is divided into 2 limbs. This is evident from the conjunctive
“and” in the said provision. The first part stipulates that the
limitation period prescribed by the special law or local law will
prevail over the limitation period prescribed in the Schedule to
the Limitation Act. In this case, the Arbitration Act is a “special
D
law” which prescribes a specific period of limitation in Section
34(3) for filing objections to an arbitral award passed under the
1996 Act and consequently the provisions of 1996 Act would apply.
There is no provision under the Limitation Act, 1963 dealing
with challenging an Award passed under the Arbitration Act. The
E second part mandates that Sections 4 to 24 of the Limitation Act
will apply for determining the period of limitation “only in so far
as, and to the extent to which, they are not expressly excluded
by such special or local law.” Thus the extent of the application
of Sections 4 to 24 of Limitation Act will apply for determining
the limitation period under the Arbitration Act only if they are
F
not expressly excluded by Arbitration Act. [Paras 20, 21 and 22]
[157-A-D]
1.2 Section 17, Limitation Act, 1963 does not extend or
break the limitation period. It only postpones or defers the
commencement of the limitation period. This is evident from the
G phrase “the period of limitation shall not begin to run”.
[Para 32] [160-G]
1.3 Characteristics of Section 34(3) are:
(a) Section 34 is the only remedy for challenging an award passed
under Part I of the Arbitration Act. Section 34(3) is a
H
P. RADHA BAI AND ORS. v. P. ASHOK KUMAR AND ANR. 145

limitation provision, which is inbuilt into the remedy A
provision. One does not have to look at the Limitation Act
or any other provision for identifying the limitation period
for challenging an Award passed under Part I of the
Arbitration Act.
(b) The time limit for commencement of limitation period is B
also provided in Section 34(3) i.e. the time from which a
party making an application “had received the Arbitral
Award” or disposal of a request under Section 33 for
corrections and interpretation of the Award.
(c) Section 34(3) prohibits the filing of an application for setting C
aside of an Award after three months have elapsed from
the date of receipt of Award or disposal of a request under
Section 33. Section 34(3) uses the phrase “an application
for setting aside may not be made after three months have
elapsed”. The phrase “may not be made” is from the
UNCITRAL Model Law and has been understood to mean D
“cannot be made”.
(d) The limitation provision in Section 34(3) also provides for
condonation of delay. Unlike Section 5 of Limitation Act,
the delay can only be condoned for 30 days on showing
sufficient cause. The crucial phrase “but not thereafter” E
reveals the legislative intent to fix an outer boundary period
for challenging an Award.
(e) Once the time limit or extended time limit for challenging
the arbitral award expires, the period for enforcing the
award under Section 36 of the Arbitration Act commences. F
This is evident from the phrase “where the time for making
an application to set aside the arbitral award under Section
34 has expired”. There is an integral nexus between the
period prescribed under Section 34(3) to challenge the
Award and the commencement of the enforcement period
G
under Section 36 to execute the Award. [Para 34]
[161-C-G; 162-A-G]
1.4 If Section 17 of the Limitation Act were to be applied
for determining the limitation period under Section 34(3), it would
have the following consequences-
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146 SUPREME COURT REPORTS [2018] 12 S.C.R.

A (a) In Section 34(3), the commencement period for
computing limitation is the date of receipt of award or the
date of disposal of request under Section 33 (i.e
correction/additional award). If Section 17 were to be
applied for computing the limitation period under Section
34(3), the starting period of limitation would be the date of
B
discovery of the alleged fraud or mistake. The starting point
for limitation under Section 34(3) would be different from
the Limitation Act.
(b) The proviso to Section 34(3) enables a Court to
entertain an application to challenge an Award after the
C three months period is expired, but only within an
additional period of thirty dates, “but not thereafter”. The
use of the phrase “but not thereafter” shows that the 120
days period is the outer boundary for challenging an Award.
If Section 17 were to be applied, the outer boundary for
D challenging an Award could go beyond 120 days. The phrase
“but not thereafter” would be rendered redundant and oti-
ose. This Court has consistently taken this view that the
words “but not thereafter” in the proviso of Section 34 (3)
of the Arbitration Act are of a mandatory nature, and couched
in negative terms, which leaves no room for doubt.
E [Para 35] [162-F-G; 163-A-D]
1.5 The express exclusion can be inferred either from the
language of the special law or it can be necessarily implied
from the scheme and object of the special law. The aforesaid
inconsistencies with the language of Section 34(3) of
F Arbitration Act tantamount to an “express exclusion” of
Section 17 of Limitation Act. Further, the exclusion of
Section 17 is also necessarily implied when one looks at
the scheme and object of the Arbitration Act.
[Paras 25, 36 and 38] [158-B-C; 163-E; 164-B]
G 1.6 First, the purpose of Arbitration Act was to provide for a
speedy dispute resolution process. The Statement of
Objects and Reasons reveal that the legislative intent of
enacting the Arbitration Act was to provide parties with an
efficient alternative dispute resolution system which gives
H
P. RADHA BAI AND ORS. v. P. ASHOK KUMAR AND ANR. 147

litigants an expedited resolution of disputes while reducing A
the burden on the courts. Article 34(3) reflects this intent
when it defines the commencement and concluding period
for challenging an Award. Finality is a fundamental principle
enshrined under the Arbitration Act and a definitive time
limit for challenging an Award is necessary for ensuring
B
finality. If Section 17 were to be applied, an Award can be
challenged even after 120 days. This would defeat the
Arbitration Act’s objective of speedy resolution of disputes.
The finality of award would also be in a limbo as a party can
challenge an Award even after the 120 day period. Second,
extending Section 17 of Limitation Act to Section 34 would C
do violence to the scheme of the Arbitration Act. Section
36 enables a party to apply for enforcement of Award when
the period for challenging an Award under S.34 has expired.
However, if Section 17 were to be extended to Section 34,
the determination of “time for making an application to set
D
aside the arbitral award” in Section 36 will become uncertain
and create confusion in the enforcement of Award. This runs
counter to the scheme and object of the Arbitration Act.
Third, Section 34(3) reflects the principle of unbreakability.
Extending Section 17 of the Limitation Act would go
contrary to the principle of ‘unbreakability’ enshrined under E
Section 34(3) of the Arbitration Act. [Paras 39-42]
[164-B-H; 165-A-C]
International Commercial Arbitration and Conciliation
in UNCITRAL Model Law Jurisdictions, 2 nd Ed. by
Dr. Peter Binder - referred to. F
1.7 Section 17 does not defer the starting point of the
limitation period merely because the Appellants has committed
fraud. Section 17 does not encompass all kinds of frauds and
mistakes. Section 17(1)(b) and (d) encompasses only those
fraudulent conduct or act of concealment of documents which have G
the effect of suppressing the knowledge entitling a party to pursue
its legal remedy. Once a party becomes aware of the antecedent
facts necessary to pursue a legal proceeding, the limitation period
commences. In the context of Section 34, a party can challenge
an award as soon as it receives the award. Once an award is
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148 SUPREME COURT REPORTS [2018] 12 S.C.R.

A received, a party has knowledge of the award and the limitation
period commences. The objecting party is therefore precluded
from invoking Section 17(1)(b) & (d) once it has knowledge of
the Award. Section 17(1)(a) and (c) of Limitation Act may not even
apply, if they are extended to Section 34, since they deal with a
scenario where the application is “based upon” the fraud of the
B
respondent or if the application is for “relief from the
consequences of a mistake”. Section 34 application is based on
the award and not on the fraud of the respondent and does not
seek the relief of consequence of a mistake. [Paras 44, 47]
[165-E-G; 166-E-F]
C 1.8 The fraudulent conduct where Section 17 of the
Limitation Act would have helped the objecting party is where
there was a fraud in the delivery of the award. However, in such
a scenario, resort to section 17 is not necessary. If there is any
fraud in the delivery of Award, the requirement of receipt of Award
D under Section 34(3) itself is not satisfied. Any receipt of Award
must be effective receipt. [Para 48] [166-G]
1.9 Once the party has received the Award, the limitation
period under Section 34(3) of the Arbitration Act commences.
Section 17 of the Limitation Act would not come to the rescue of
E such objecting party. In the present case, the Respondents had a
right to challenge the Award under Section 34 the moment they
received it. In this case, Respondents received the Award on
21.02.2010. The alleged MoU was executed on 09.04.2010. Once
the Respondents received the Award, the time under Section
34(3) commenced and any subsequent disability even as per
F Section 17 or Section 9 of Limitation Act is immaterial. Merely
because the Appellant had committed some fraud, it would not
affect the Respondents right to challenge the Award if the facts
entitling the filing of a Section 34 Application was within their
knowledge. The moment the Respondents have received the
G Award, the three months period prescribed under Section 34(3)
begins to commence. It was incumbent on the Respondents to
have instituted an application under Section 34 challenging an
award. Therefore, there would not have been any point for
meaningful remand as the question of law is answered against

H
P. RADHA BAI AND ORS. v. P. ASHOK KUMAR AND ANR. 149

the Respondents herein. The judgment and order of the High A
Court and also the order condoning the delay of 236 days in filing
the objections are set aside. [Paras 50, 51] [167-F-H; 168-A-C]
Vidyacharan Shukla v. Khubchand Baghel AIR 1964
SC 1099 : [1964] 6 SCR 129 - followed.
Union of India v. Popular Construction Co. B
(2001) 8 SCC 470 : [2001] 3 Suppl. SCR 619 ;
Hukumdev Narain Yadav v. Lalit Narain Mishra
(1974) 2 SCC 133 : [1974] 3 SCR 31 ; Commissioner
of Customs and Central Excise v. Hongo India (P) Ltd.
(2009) 5 SCC 791 ; State of Himachal Pradesh v. C
Himachal Techno Engineers & Anr. (2010) 12 SCC
210 : [2010] 8 SCR 1025 ; Assam Urban Water Supply
& Sewerage Board v. Subash Projects & Marketing Ltd.
(2012) 2 SCC 624 : [2012] 1 SCR 403 ; Anil kumar
Jinabhai Patel (D) through LRs v. Pravinchandra
Jinabhai Patel & Ors. (2018) SCC Online SC 276 ; D
Yeswant Deorao Deshmukh v. Walchand Ramchand
Kothari [1950] SCR 852 ; Pallav Sheth v. Custodian,
(2001) 7 SCC 549 : [2001] 1 Suppl. SCR 387 – relied
on.
Consolidated Engineering Enterprises v. Principal E
Secretary, Irrigation Department (2008) 7 SCC 169 :
[2008] 5 SCR 1108 ; State of Goa v. Western Builders
(2006) 6 SCC 239 : [2006] 3 Suppl. SCR 288 ; Coal
India Ltd. v. Ujjal Transport Agency (2011) 1 SCC
117 ; M.P. Housing Board v. Mohanlal& Co. (2016) 14 F
SCC 199 ; Chhattisgarh State Electricity Board v.
Central Electricity Regulatory Commission (2010) 5
SCC 23 : [2010] 4 SCR 680 ; Gopal Sardar v. Karuna
Sardar (2004) 4 SCC 252 : [2004] 2 SCR 826 ; Union
of India v. Tecco Trichy Engineers & Contractors (2005)
4 SCC 239 : [2005] 2 SCR 983 – referred to. G
ABC Co. Ltd. v. XYZ Co. Ltd. [2003] SGHC 107
(High Court of Singapore) – referred to.

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150 SUPREME COURT REPORTS [2018] 12 S.C.R.

A Case Law Reference
[2001] 3 Suppl. SCR 619 relied on Para 10
[2008] 5 SCR 1108 referred to Para 10
(2011) 1 SCC 117 referred to Para 23
B
(2016) 14 SCC 199 referred to Para 23
[1964] 6 SCR 129 followed Para 26
[1974] 3 SCR 31 relied on Para 27
C
(2009) 5 SCC 791 relied on Para 28
[2010] 4 SCR 680 referred to Para 29
[2004] 2 SCR 826 referred to Para 29

D [2010] 8 SCR 1025 relied on Para 35
[2012] 1 SCR 403 relied on Para 35
[1950] SCR 852 relied on Para 45
[2001] 1 Suppl. SCR 387 relied on Para 46
E
[2005] 2 SCR 983 refererd to Para 48

CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 7710-
F 7713 of 2013.
From the Judgment and Order dated 18.06.2012 of the High Court
of Judicature at Andhra Pradesh, Hyderabad in Civil Revision Petition
Nos. 2151, 2246, 2383 and 2458 of 2012.
Devansh A. Mohta, Kumar Parimal, Nilakanta Nayak, Aniruddha
G
P. Mayee, Advs. for the Appellants.
Yashraj Singh Deora, Ms. Asmita Singh (for M/s Mitter & Mitter
Co.,) Advs. for the Respondents.

H
P. RADHA BAI AND ORS. v. P. ASHOK KUMAR AND ANR. 151

The Judgment of the Court was delivered by A
N. V. RAMANA, J. 1. These appeals are filed, aggrieved by the
judgment and order dated 18.06.2012 in the Civil Revision Petition
Nos. 2151, 2246, 2383 and 2458 of 2012 passed by the High Court of
Judicature at Andhra Pradesh at Hyderabad.
B
2. An interesting question of law arises in this batch of petitions,
concerning the applicability of Section 17 of the Limitation Act, 1963
[‘Limitation Act’] for condonation of a delay caused on the account of
alleged fraud played on the objector (party challenging the award)
beyond the period prescribed under Section 34 (3) of the Arbitration and
Conciliation Act of 1996 [‘Arbitration Act’]. C
3. The facts which give rise to this question fall into a narrow
compass. Originally one Mr. P. Kishan Lal carried on business and
acquired several properties. On his death, Mr. P. Kishan Lal was
survived by eight (8) legal heirs (Appellant Nos. 1 to 6 and Respondent
Nos. 1 and 2). D
4. After the death of Mr. Kishan Lal, several disputes have cropped
up on the division of properties. Having failed to resolve the dispute, the
parties turned towards arbitration to resolve the dispute.
Five Arbitrators were appointed to adjudicate and distribute eleven
properties belonging to them. E
5. On 18.02.2010, the arbitrators passed a unanimous Award
providing for the division of properties and businesses. The parties
received the Award on 21.02.2010. There is no dispute on the receipt of
the Award by the parties.
6. The Respondents allege that after the pronouncement of the F
award, the Appellants in bad faith entered into a Memorandum of
Understanding (MoU) with the Respondents. According to the
Respondents, the Appellants agreed to give certain additional properties
to Respondent No. 1, which were more than what were provided in the
Award. The Respondents alleged that after entering into the MoU, the G
Appellantswere required to execute Gift and Release Deeds to give
effect to the MoU. However, the Appellants delayed the execution of
the Gift and Release Deeds as contemplated by the MoU.

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152 SUPREME COURT REPORTS [2018] 12 S.C.R.

A 7. In the meanwhile, the three-month period and the extended
period of 30 days for challenging an Award under Section 34(3) of the
Arbitration Act had expired. After the time limit expired, the Appellants
filed an Execution Petition (EP) for execution of the Award. The trial
court held that EP was not maintainable. On appeal, the High Court set
aside the order of the trial court and held that the Execution Petition was
B
maintainable and directed the trial court to decide it on merits.
8. When the Respondents realized that the Appellants were
delaying the execution of the Gift Deed contemplated by the MoU, the
Respondents on 08.02.2011 filed an application under Section 34(3) of
the Arbitration Act for setting aside the Award. This filing was 236
C days after the receipt of the Award by the Respondents. The
application was accompanied by another application under Section 5 of
the Limitation Act seeking condonation of the delay of 236 days. In the
application for condonation of delay, the Respondents alleged that:
a. Award was served on the Respondents on 21.02.2010;
D
b.They were laypersons and were not aware of the legal
requirement of filing objections within the period prescribed under
the Arbitration Act.
c. Since they were dissatisfied with the Award, they raised objections
E before the learned Arbitrators. The Arbitrators called upon all the
parties and conducted conciliation. Accordingly, the parties
entered into a MoU. The MoU contemplated for execution of Gift
Deed and Release Deed in favour of Respondent No.1. However,
the Appellants failed to execute the required documents as per the
MoU with an intent to defeat their rights.
F
d. One of the Respondents was physically indisposed for one month.
9. During the pendency of the aforesaid interim application,
seeking condonation of the delay, the Respondents filed another
application being I.A. No. 1977 of 2011 in I.A. No. 598 of 2011, seeking
an order of the trial court to summon the Sub-registrar, Charminar to
G
prove the veracity of the Memorandum of Understanding and to counter
the allegations raised by the Appellants herein, as to the falsification and
fabrication of the Memorandum dated 09.04.2010. For completeness of
narration, it may be stated that additional I.A.s, being I.A. No. 210 and
211 of 2012, were sought by the Respondent seeking certain documents
H to be brought on record.
P. RADHA BAI AND ORS. v. P. ASHOK KUMAR AND ANR. 153
[N. V. RAMANA, J.]

10. By order dated 21.02.2012, the trial court dismissed the IA. A
No. 598 of 2011, pertaining to the condonation of delay in filing the
Section 34 application. The Trial Court while dismissing the aforesaid
application as indicated above, reasoned as under-
i. That the Court is not empowered to stretch the limitation period
beyond the requisite period given under Section 34 of the B
Arbitration Act.
ii. Placing reliance on Union of India vs.Popular Construction Co.,
(2001) 8 SCC 470 and Consolidated Engineering Enterprises
vs. Principal Secretary, Irrigation Department, (2008) 7 SCC
169,held that the language of Section 34 of the Arbitration Act C
mandated a strict adherence to the time period provided
thereunder and the extension beyond the same was not possible
under any circumstances. Therefore, Section 5 of the Limitation
Act was not applicable to an application filed under Section 34 of
the Arbitration Act.
D
iii. Based on the aforesaid judgments of this Hon’ble Court, and the
provisions of Section 34(3) of the Arbitration Act, the City Civil
Court held that Section 5 of the Limitation Act, 1963, has no
application, as the Court has no power to condone the delay
beyond three months and thirty days. On this ground alone, the
objections filed under Section 34 were liable to be dismissed. E

iv. That the trial court rejected the contention that the Respondent
(objector) was unable to file the objections within the period of
limitation on the ground of illness and no medical certificate was
provided to substantiate such claim.
F
v. That ignorance of law on behalf of the Respondents, to be not
aware of the technicalities provided under Section 34 of the
Arbitration Act was not excusable.
vi. Moreover, the trial court came to a conclusion that equitable grounds
cannot be utilized to create exceptions not mandated under the
G
statutory law.
We may note that the trial court although discussed about the
existence of the Memorandum of Understanding dated 09.04.2010 and
its impact on the Respondent’s delay in filing the Section 34 application,
there is no specific discussion concerning the applicability of Section 17
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154 SUPREME COURT REPORTS [2018] 12 S.C.R.

A of the Limitation Act in the trial court order. Moreover, other interim
applications filed by the respondents were also dismissedconsequentially.
11. Being aggrieved by the dismissal, respondents preferred four
Civil Revision petitions, before the High Court of Andhra Pradesh under
Article 227 of the Constitution of India, being C.R.P. No. 2151, 2246,
B 2383 and 2458 of 2012. By the impugned order dated 18.06.2012, the
High Court remanded the matter to the trial court concerning the
applicability of Section 17 of the Limitation Act in an application under
Section 34 of the Arbitration Act. The High Court observed
“Even though Mr. K. Prabhakar, learned counsel for the
C respondents sought to argue that when Section 5 of the Act is
excluded, automatically Section 17 of the Act also gets excluded,
I refrain from expressing any opinion on this aspect, because this
is required to be considered by the lower court at the first
instance before this Court examines the same at an appropriate
stage. On this short ground, I feel that it is just and
D appropriate to remand the matter back to the learned Chief
Judge, City Civil Court, Hyderabad for considering the
above-mentioned pleadings of the petitioners and
pronouncing upon the same with reference to the
applicability or otherwise of the provision of Section 17 of
E the Act. Therefore, without expressing any opinion on these
aspects, the learned Chief Judge is directed to reconsider the case
only to this limited extent and pass a fresh order after hearing
both parties, within a period of two months from the date of
receipt of this order. It is made clear that the orders of the lower
Court in respect of the other aspects stand confirmed”.
F
(emphasis supplied)
12. Aggrieved by the remand order passed by the High Court on
the applicability of Section 17 of the Limitation Act to the proceedings,
the Appellants have approached this Court in these appeals.
G 13. Before we delve into any other aspect of this case, it may be
important to note that we would have agreed with the High Court wherein
a remand may have been required in usual course for considering the
applicability of Section 17 of the Limitation Act as there is an apparent
insufficiency of reasons in the trial court order. But, in this case there
has been a considerable delay in resolving the dispute. The very purpose
H
P. RADHA BAI AND ORS. v. P. ASHOK KUMAR AND ANR. 155
[N. V. RAMANA, J.]

of speedy justice delivery mechanism would be frustrated by such A
delays if the matter is allowed to linger before the courts. We had
positively persuaded the parties several times to come to an amicable
settlement and asked the advocates representing them to use their good
offices to refer parties to mediation and avoid decades of litigation. But,
our efforts were not met with much success in any event.
B
14. The High Court could have examined the legal issue of
applicability of Section 17 of the Limitation Act to an application filed
under Section 34 of the Arbitration Act. This is a pure question of law.
Only if Section 17 of Limitation Act was applicable to a Section 34
application, the question of factual satisfaction of the ingredients of
Section 17 to the present case and a consequent remand to the trial C
court would arise.
15. The learned counsel for the appellants, Mr. Devansh A.
Mohta, argued that-
i. Limitation period provided under Section 34(3) of the Arbitration D
Act begins ‘only’ upon the receipt of the award by the parties and
the same cannot be diluted by a different starting point
provided under the Limitation Act, in light of Section 29 (2) of the
Limitation Act.
ii. The period of limitation under Section 34(3) of the Arbitration Act E
is ‘unbreakable’ and is meant to run continuously.
iii. Definitive time limit is necessary to ensure expeditious and
effective resolution of disputes between the parties.
iv. The mandate of Popular Construction Case(supra) and
Consolidated Engineering Case (supra) wherein the emphasis F
on ‘fixed period’ needs to be given effect to.
v. The expression ‘had received the arbitral award’ found in
Section 34 (3) of the Arbitration Act expressly excludes
applicability of Section 17 of the Limitation Act.
vi. This Court should appreciate the difference between G
concealment of right to action being different from preventing a
person from taking action.
16. On the contrary, the learned counsel for the respondents,
Mr. Yashraj Singh Deora, had contended that-
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156 SUPREME COURT REPORTS [2018] 12 S.C.R.

A i. The reasoning provided under Popular Construction Case(supra)
and Consolidated Engineering Case(supra) clearly indicates to
the applicability of Section 17 of the Limitation Act, similar to the
applicability of Section 14 of the Limitation Act.
ii. Limitation Act is applicable to all proceedings before the court.
B iii. It is evident that the Arbitration Act under Section 34 (3) provides
for a different time period than the one present under Article 137
of the Limitation Act, accordingly, the special law would
therefore, prevail in so far as the issue of period of limitation is
concerned. However, for ‘computation of the period of limitation’
C or arriving at the ‘prescribed period’ the provisions of Section 4 to
24 of the Limitation Act would automatically apply unless they
are expressly excluded by the special law.
iv. That it has been highly inequitable for the respondents, who were
victims of bad faith negotiation undertaken by the Appellants to
D derail the respondents from pursuing this case for enforcement of
their rights.
17. We have heard the counsels for both the parties at length, and
also perused the material available on record.
18. We are now to examine whether Section 17 of the Limitation
E Act is applicable while determining the limitation period under Section
34(3) of the Arbitration Act?
19. This analysis has to necessarily begin from Section 29(2) of
the Limitation Act, which states
29 (2) Where any special or local law prescribes for any suit,
F
appeal or application a period of limitation different from the
period prescribed by the Schedule, the provisions of Section 3
shall apply as if such period were the period prescribed by the
Schedule and for the purpose of determining any period of
limitation prescribed for any suit, appeal or application by any
G special or local law, the provisions contained in Sections 4 to 24
(inclusive) shall apply only in so far as, and to the extent to which,
they are not expressly excluded by such special or local law.
(emphasis added)

H
P. RADHA BAI AND ORS. v. P. ASHOK KUMAR AND ANR. 157
[N. V. RAMANA, J.]

20. Section 29(2) is divided into 2 limbs. This is evident from the A
conjunctive “and” in the said provision. The inter-relation between these
two limbs was considered by a Bench of five Judges of this Court in
Vidyacharan Shukla v. KhubchandBaghel, [1964] 6 SCR 129.
21. The first part stipulates that the limitation period prescribed by
the special law or local law will prevail over the limitation period B
prescribed in the Schedule to the Limitation Act. In this case, the
Arbitration Act is a “special law” which prescribes a specific period of
limitation in Section 34(3) for filing objections to an arbitral award passed
under the 1996 Act and consequently the provisions of Arbitration Act
would apply. We also note that there is no provision under the Limitation
Act dealing with challenging an Award passed under the Arbitration C
Act.
22. The second part mandatesthat Sections 4 to 24 of the
Limitation Act will apply for determining the period of limitation “only in
so far as, and to the extent to which, they are not expressly excluded by
such special or local law.”Thus the extent of the application of Sections D
4 to 24 of Limitation Act will apply for determining the limitation period
under the Arbitration Act only if they are not expressly excluded by
Arbitration Act.
23. We are conscious that this Court in several pronouncements
has extended Section 14 of Limitation Act to Section 34 of Arbitration E
Act and thereby excluded the time spent inbonafide pursuing
proceedings in a Court which lacks jurisdiction. (State of Goa v.
Western Builders (2006) 6 SCC 239 at para 25; Consolidated
Engineering Enterprises v. Principal Secretary, Irrigation
Department, (2008) 7 SCC 169 at para 27 and 29; Coal India Ltd. F
v. Ujjal Transport Agency, (2011) 1 SCC 117 at para 6; M.P.
Housing Board v. Mohanlal & Co., (2016) 14 SCC 199 at para
13). Similarly, this Court also extended Section 12 of the Limitation Act
to the Arbitration Act and excluded the day on which the Award was
received from computing the starting period under Section 34(3).
We note that none of these cases dealt with the question whether the G
scheme of Section 17 of the Limitation Act is consistent with Section 34
of the Arbitration Act.

H
158 SUPREME COURT REPORTS [2018] 12 S.C.R.

A 24. Relying on these pronouncements, the Respondents’ counsel
asserted that there is no express exclusion of Section 17 in the
Arbitration Act and therefore the benefit of Section 17 of Limitation Act
should be extended while determining the period of limitation under
Section 34(3).
B 25. This requires us to consider the phrase “express exclusion” in
Section 29(2) of the Limitation Act. This Court in a series of cases held
that the express exclusion can be inferred either from the language of
the special law or it can be necessarily implied from the scheme and
object of the special law.
C 26. A Bench of five Judges in Vidyacharan Shukla v. Khubchand
Baghel, AIR 1964 SC 1099, interpreting the phrase “express
exclusion” observed:
“The contention is that sub-section (3) of Section 116-A of the
Act not only provides a period of limitation for such an appeal, but
D also the circumstances under which the delay can be excused,
indicating thereby that the general provisions of the Limitation
Act are excluded. There are two answers to this argument. Firstly,
Section 29(2)(a) of the Limitation Act speaks of express
exclusion but there is no express exclusion in sub-section (3) of
Section 116-A of the Act; secondly, the proviso from which an
E implied exclusion is sought to be drawn does not lead to any such
necessary implication”.
27. This principle was further crystallised in Hukumdev Narain
Yadav v. Lalit Narain Mishra,(1974) 2 SCC 133 wherein a Bench
of three Judges held that:
F
“It is contended before us that the words “expressly excluded”
would mean that there must be an express reference made in the
special or local law to the specific provisions of the Limitation Act
of which the operation is to be excluded. As usual the meaning
given in the Dictionary has been relied upon, but what we have to
G see is whether the scheme of the special law, that is, in this case
the Act, and the nature of the remedy provided therein are such
that the Legislature intended it to be a complete code by itself
which alone should govern the several matters provided by it. If
on an examination of the relevant provisions it is clear that the
provisions of the Limitation Act are necessarily excluded, then
H
P. RADHA BAI AND ORS. v. P. ASHOK KUMAR AND ANR. 159
[N. V. RAMANA, J.]

the benefits conferred therein cannot be called in aid to A
supplement the provisions of the Act.In our view, even in a case
where the special taw does not exclude the provisions of Sections
4 to 24 of the Limitation Act by an express reference, it would
nonetheless be open to the Court to examine whether and to what
extent the nature of those provisions or the nature of the
B
subject-matter and scheme of the special law exclude their
operation”.(emphasis added)
28. A Bench of three Judges in Commissioner of Customs and
Central Excise v. Hongo India (P) Ltd., (2009) 5 SCC 791
reiterated this principle when it held:
C
“It was contended before us that the words “expressly excluded”
would mean that there must be an express reference made in the
special or local law to the specific provisions of the Limitation Act
of which the operation is to be excluded. In this regard, we have
to see the scheme of the special law which here in this case is the
Central Excise Act. The nature of the remedy provided therein is D
such that the legislature intended it to be a complete code by itself
which alone should govern the several matters provided by it. If,
on an examination of the relevant provisions, it is clear that the
provisions of the Limitation Act are necessarily excluded, then
the benefits conferred therein cannot be called in aid to E
supplement the provisions of the Act. In our considered view, that
even in a case where the special law does not exclude the
provisions of Sections 4 to 24 of the Limitation Act by an express
reference, it would nonetheless be open to the court to examine
whether and to what extent, the nature of those provisions or the
nature of the subject-matter and scheme of the special law F
exclude their operation. In other words, the applicability of the
provisions of the Limitation Act, therefore, is to be judged not
from the terms of the Limitation Act but by the provisions of the
Central Excise Act relating to filing of reference application to
the High Court”. G
29. These principles were reiterated by this Court in Union of
India v. Popular Construction Co., (2001) 8 SCC 470 at page 474;
Chhattisgarh State Electricity Board v. Central Electricity
Regulatory Commission, (2010) 5 SCC 23 at para 32 ; Gopal Sardar
v. Karuna Sardar, (2004) 4 SCC 252 at para 13. H
160 SUPREME COURT REPORTS [2018] 12 S.C.R.

A 30. Thus, the inquiry is - whether the text or the scheme and
object of the Arbitration Act excludes the application of Section 17 of
Limitation Act while determining the limitation period?
31. We therefore have to contrast Section 17 of the Limitation
Act with Section 34(3) of the Arbitration Act. The relevant part of
B Section 17 states
17. Effect of fraud or mistake.—
(1) Where, in the case of any suit or application for which a
period of limitation is prescribed by this Act,—

C (a) the suit or application is based upon the fraud
of the defendant or respondent or his agent; or
(b) the knowledge of the right or title on which a suit or
application is founded is concealed by the fraud of any such
person as aforesaid; or
D
(c) the suit or application is for relief from the consequences of a
mistake; or
(d) where any document necessary to establish the right of the
plaintiff or applicant has been fraudulently concealed from him,
E the period of limitation shall not begin to run until plaintiff or
applicant has discovered the fraud or the mistake or could, with
reasonable diligence, have discovered it; or in the case of a
concealed document, until the plaintiff or the applicant first had
the means of producing the concealed document or compelling
its production:
F
32. Section 17 does not extend or break the limitation period. It
only postpones or defers the commencement of the limitation period.
This is evident from the phrase “the period of limitation shall not
begin to run”.

G 33. In contrast, Section 34(3) of the Arbitration Act states
34. Application for setting aside arbitral award-…
…
(3) An application for setting aside may not be made after three
months have elapsed from the date on which the party making
H
P. RADHA BAI AND ORS. v. P. ASHOK KUMAR AND ANR. 161
[N. V. RAMANA, J.]

that application had received the arbitral award or, if a request A
had been made under section 33, from the date on which that
request had been disposed of by the arbitral tribunal.
Provided 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 B
within a further period of thirty days, but not thereafter.
(emphasis added)
34. Section 34(3) deserves careful scrutiny and its characteristics
must be highlighted:
(a) Section 34 is the only remedy for challenging an award passed C
under Part I of the Arbitration Act. Section 34(3) is a limitation
provision, which is an inbuilt into the remedy provision. One does
not have to look at the Limitation Act or any other provision for
identifying the limitation period for challenging an Award passed
under Part I of the Arbitration Act. D
(b) The time limit for commencement of limitation period is also
provided in Section 34(3) i.e. the time from which a party making
an application “had received the Arbitral Award” or disposal of
a request under Section 33 for corrections and interpretation of
the Award. E
(c) Section 34(3) prohibits the filing of an application for setting aside
of an Award after three months have elapsed from the date of
receipt of Award or disposal of a request under Section 33. Section
34(3) uses the phrase “an application for setting aside may
not be made after three months have elapsed”. The phrase F
“may not be made” is from the UNCITRAL Model Law1 and has
been understood to mean “cannot be made”. The High Court of
Singapore in ABC Co. Ltd v. XYZ Co. Ltd,[2003] SGHC 107)
“The starting point of this discussion must be the Model
Law itself. On the aspect of time, Article 34(3) is brief. All
G
it says is that the application may not be made after the
1
" An application for setting aside may not be made after three months have elapsed
from the date on which the party making that application had received the award or, if
a request had been made under article 33, from the date on which that request had been
disposed of by the arbitral tribunal”.
H
162 SUPREME COURT REPORTS [2018] 12 S.C.R.

A lapse of three months from a specified date. Although the
words used are ‘may not’ these must be interpreted as
‘cannot’ as it is clear that the intention is to limit the time
during which an award may be challenged. This
interpretation is supported by material relating to the
discussions amongst the drafters of the Model Law. It
B
appears to me that the court would not be able to entertain
any application lodged after the expiry of the three months
period as Article 34 has been drafted as the
all-encompassing, and only, basis for challenging an
award in court. It does not provide for any extension of
C the time period and, as the court derives its jurisdiction to
hear the application from the Article alone, the absence of
such a provision means the court has not been conferred
with the power to extend time”.
(d) The limitation provision in Section 34(3) also provides for
D condonation of delay. Unlike Section 5 of Limitation Act, the delay
can only be condoned for 30 days on showing sufficient cause.
The crucial phrase “but not thereafter” reveals the legislative intent
to fix an outer boundary period for challenging an Award.
(e) Once the time limit or extended time limit for challenging the
E arbitral award expires, the period for enforcing the award under
Section 36 of the Arbitration Act commences. This is evident from
the phrase “where the time for making an application to set
aside the arbitral award under Section 34 has expired”.2 There
is an integral nexus between the period prescribed under Section
34(3) to challenge the Award and the commencement of the
F enforcement period under Section 36 to execute the Award.
35. If Section 17 of the Limitation Actwere to be applied to
determining the limitation period under Section 34(3), it would have the
following consequences

G (a) In Section 34(3), the commencement period for computing
limitation is the date of receipt of award or the date of disposal of
request under Section 33 (i.e correction/additional award).
2
36. Enforcement.—Where the time for making an application to set aside the arbitral
award under section 34 has expired, or such application having been made, it has been
refused, the award shall be enforced under the Code of Civil Procedure, 1908 (5 of
H 1908) in the same manner as if it were a decree of the Court.
P. RADHA BAI AND ORS. v. P. ASHOK KUMAR AND ANR. 163
[N. V. RAMANA, J.]

If Section 17 were to be applied for computing the limitation A
period under Section 34(3), the starting period of limitation would
be the date of discovery of the alleged fraud or mistake. The
starting point for limitation under Section 34(3) would be different
from the Limitation Act.
(b) The proviso to Section 34(3) enables a Court to entertain an B
application to challenge an Award after the three months period is
expired, but only within an additional period of thirty dates, “but
not thereafter”. The use of the phrase “but not thereafter” shows
that the 120 days period is the outer boundary for challenging an
Award. If Section 17 were to be applied, the outer boundary for
challenging an Award could go beyond 120 days. The phrase “but C
not thereafter” would be rendered redundant and otiose. This Court
has consistently taken this view that the words “but not
thereafter” in the proviso of Section 34 (3) of the Arbitration Act
are of a mandatory nature, and couched in negative terms, which
leaves no room for doubt. (State of Himachal Pradesh v. D
Himachal Techno Engineers & Anr., (2010) 12 SCC 210, Assam
Urban Water Supply & Sewerage Board v. Subash Projects
& Marketing Ltd., (2012) 2 SCC 624 and AnilkumarJinabhai
Patel (D) through LRs v. Pravinchandra Jinabhai Patel &
Ors., (2018) SCC Online SC 276)
E
36. In our view, the aforesaid inconsistencies with the language
of Section 34(3) of Arbitration Acttantamount to an “express exclusion”
of Section 17 of Limitation Act.
37. This Court in Popular Construction Case (supra) at page
474 followed the same approach when it relied on the phrase “but not F
thereafter” to hold that Section 5 of Limitation Act was expressly
excluded.
12. As far as the language of Section 34 of the 1996 Act is
concerned, the crucial words are “but not thereafter” used in the
proviso to sub-section (3). In our opinion, this phrase would amount G
to an express exclusion within the meaning of Section 29(2) of
the Limitation Act, and would therefore bar the application of
Section 5 of that Act. Parliament did not need to go further. To
hold that the court could entertain an application to set aside the
award beyond the extended period under the proviso, would render
H
164 SUPREME COURT REPORTS [2018] 12 S.C.R.

A the phrase “but not thereafter” wholly otiose. No principle of
interpretation would justify such a result.
(emphasis added)
38. Further, the exclusion of Section 17 is also necessarily implied
when one looks at the scheme and object of the Arbitration Act.
B
39. First, the purpose of Arbitration Act was to provide for a
speedy dispute resolution process. The Statement of Objects and
Reasons reveal that the legislative intent of enacting the Arbitration Act
was to provide parties with an efficient alternative dispute resolution
system which gives litigants an expedited resolution of disputes while
C reducing the burden on the courts.Article 34(3) reflects this intent when
it defines the commencement and concluding period for challenging an
Award. This Court in Popular Construction Case (supra) highlighted
the importance of the fixed periods under the Arbitration Act.We may
also add that the finality is a fundamental principle enshrined under the
D Arbitration Act and a definitive time limit for challenging an Awardis
necessary for ensuring finality. If Section 17 were to be applied, an
Award can be challenged even after 120 days. This would defeat the
Arbitration Act’s objective of speedy resolution of disputes. The finality
of award would also be in a limbo as a party can challenge an Award
even after the 120 day period.
E
40. Second, extending Section 17 of Limitation Act to Section 34
would do violence to the scheme of the Arbitration Act. As discussed
above, Section 36 enables a party to apply for enforcement of Award
when the period for challenging an Award under S.34 has expired.
However, if Section 17 were to be extended to Section 34, the
F determination of “time for making an application to set aside the arbitral
award” in Section 36 will become uncertain and create confusion in
theenforcement of Award. This runs counter to the scheme and object
of the Arbitration Act.
41. Third, Section 34(3) reflects the principle of unbreakability.
G Dr. Peter Binder in International Commercial Arbitration and
Conciliation in UNCITRAL Model Law Jurisdictions, 2nd Ed., observed:
“An application for setting aside an award can only be made
during the three months following the date on which the party
making the application has received the award. Only if a party
H has made a request for correction or interpretation of the award
P. RADHA BAI AND ORS. v. P. ASHOK KUMAR AND ANR. 165
[N. V. RAMANA, J.]

under Art. 33 does the time limit of three months begin after the A
tribunal has disposed of the request. This exception from the three-
month time limit was subject to criticism in the Working group due
to fears that it could be used as a delaying tactics. However,
although “an unbreakable time limit for applications for setting
aside” was sought as being desirable for the sake of “certainty
B
and expediency” the prevailing view was that the words ought to
be retained “since they presented the reasonable consequence of
article 33”. According to this “unbreakability” of time limit and
trueto the “certainty and expediency” of the arbitral awards, any
grounds for setting aside the award that emerge after the three-
month time limit has expired cannot be raised. C
42. Extending Section 17 of the Limitation Act would go contrary
to the principle of ‘unbreakability’ enshrined under Section 34(3) of the
Arbitration Act.
43. The Respondents have argued that if Section 17 is not
extended to Section 34, it would cause enormous injustice and provide D
scope for parties to play mischief. The Respondents have cited several
illustrations where on account of fraud of the party, an objecting party
can be precluded from challenging an Award and extending Section 17
would come to the rescue of such a party.
44. The Respondent’s contention proceeds on a misconceived E
notion of Section 17. Even if Section 17 were to be extended to Section
34, it would not address the Respondent’s grievance. Section 17 does
not defer the starting point of the limitation period merely because the
Appellants has committed fraud. Section 17 does not encompass all kinds
of frauds and mistakes. Section 17(1)(b) and (d) only encompasses only F
those fraudulent conduct or act of concealment of documentswhich have
the effect of suppressing the knowledge entitling a party to pursue its
legal remedy. Once a party becomes aware of the antecedent facts
necessary to pursue a legal proceeding, the limitation period commences.
45. This principle is illustrated by a ruling of this Court in Yeswant
G
Deorao Deshmukh v. Walchand Ramchand Kothari, 1950 SCR 852.
The facts of this case are broadly similar. A decree holder files an
execution petition after the expiry of limitation period (12 years of the
passing of decree). To overcome the limitation bar, the decree-holder
alleged that the judgement debtor prevented the execution of a decree
by suppressing the ownership of certain assets (ownership of H
166 SUPREME COURT REPORTS [2018] 12 S.C.R.

A newspaper in those facts) and in support placed reliance on Section 18
of Limitation Act, 1908 (equivalent of Section 17)3 Rejecting this
contention, this Court observed:
19. In our opinion, the facts necessary to establish fraud under
Section 18 of the Limitation Act are neither admitted nor proved
B in the present case. Concealing from a person the knowledge of
his right to apply for execution of a decree is undoubtedly
different from preventing him from exercising his right, of which
he has knowledge. Section 18 of the Limitation Act postulates the
former alternative. …… The fraud pleaded, namely
suppressionofownershipof the Prabhat newspaper, did not
C conceal from him his right to make an application for execution of
the decree.
46. Similarly in PallavSheth v. Custodian, (2001) 7 SCC 549,
this Court observed that Section 17 comes to the rescue of a party for
“failing to adopt legal proceedings when the facts or material
D necessary for him to do so have been willfully concealed from him”
47. In the context of Section 34, a party can challenge an award
as soon as it receives the award. Once an award is received, a party has
knowledge of the award and the limitation period commences. The
objecting party is therefore precluded from invoking Section 17(1)(b) &
E (d) once it has knowledge of the Award.Section 17(1)(a) and (c) of
Limitation Actmay not even apply, if they are extended to Section 34,
since they deal with a scenario where the application is “based upon”
the fraud of the respondent or if the application is for “relief from the
consequences of a mistake”. Section 34 application is based on the award
and not on the fraud of the respondent and does not seek the relief of
F consequence of a mistake.
48. The fraudulent conduct where Section 17 of the Limitation
Act would have helped the objecting party is where there was a fraud in
the delivery of the award. However, in such a scenario, resort to section
17 is not necessary. If there is any fraud in the delivery of Award, the
G requirement of receipt of Award under Section 34(3) itself is not
satisfied. Any receipt of Award must be effective receipt.This Court in
Union of India v. Tecco Trichy Engineers & Contractors, (2005) 4
SCC 239 held that:
1
Although there is a slight difference in the text of S.18 of Limitation Act, 1908 and
S.17 of Limitation Act, 1963, the relevant provision for the present case remains the
H same.
P. RADHA BAI AND ORS. v. P. ASHOK KUMAR AND ANR. 167
[N. V. RAMANA, J.]

“8.The delivery of an arbitral award under sub-section (5) of A
Section 31 is not a matter of mere 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
B
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 C
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
D
constitutes an important stage in the arbitral proceedings.
9. In the context of a huge organisation like the Railways, the
copy of the award has to be received by the person who has
knowledge of the proceedings and who would be the best person
to understand and appreciate the arbitral award and also to take a
decision in the matter of moving an application under sub-section E
(1) or (5) of Section 33 or under sub-section (1) of Section 34".
49. In view of the above, we hold that once the party has
received the Award, the limitation period under Section 34(3) of the
Arbitration Act commences. Section 17 of the Limitation Act would not
come to the rescue of such objecting party. F

50. In the present case, the Respondents had a right to challenge
the Award under Section 34 the moment they received it. In this case,
Respondents received the Award on 21.02.2010. The alleged MoU was
executed on 09.04.2010. Once the Respondents received the Award,
the time under Section 34(3) commenced and any subsequent disability G
even as per Section 17 or Section 9 of Limitation Act is immaterial.
Merely because the Appellant had committed some fraud, it would not
affect the Respondents right to challenge the Award if the facts entitling

H
168 SUPREME COURT REPORTS [2018] 12 S.C.R.

A the filing of a Section 34 Application was within their knowledge. The
moment the Respondents have received the Award, the three months
period prescribed under Section 34(3) begins to commence. It was
incumbent on the Respondents to have instituted an application under
Section 34 challenging an award. Therefore, in light of the discussion
above, there would not have been any point for meaningful remand as
B
the question of law is answered against the Respondents herein.
51. In light of the aforesaid legal position, the judgment and order
of the High court dated 18.06.2012, in Civil Revision Petition Nos. 2151,
2246, 2383 and 2458 of 2012 are set-aside, and also the order allowing
I.A. No. 598 of 2011 condoning the delay of 236 days in filing the
C objections is set aside, accordingly these appeals are allowed with no
order as to costs.

Divya Pandey Appeals allowed.

D

E

F

G

H