FAO No.4870 of 2008 (O&M) -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH FAO No.4870 of 2008 (O&M) Date of Decision: 16.7.2010 M/s New Kissan Rice Mills ..Appellant. Vs. Punjab State Warehousing Corporation and others ..Respondents. CORAM: HON'BLE MR.JUSTICE RAKESH KUMAR JAIN Present: Mr.Mrigank Sharma, Advocate for the appellant. Mr.I.S.Sidhu, Advocate for respondents No.1 and 2. RAKESH KUMAR JAIN, J. This appeal is directed against the order of learned District Judge, Ferozepur dated 4.8.2006 by which Objection filed by the miller under Section 34 of the Arbitration and Conciliation Act, 1996 (for short `the Act') for setting aside the arbitral award dated 8.6.2002 has been dismissed on the ground of limitation. Learned counsel for the appellant, inter alia, contends that the Arbitrator announced his award on 8.6.2002 which was assailed by the appellant under Section 34 of the Act on 27.10.2002. The learned Court below dismissed the application being barred by limitation on the ground that copy of the award was sent by the Arbitrator to the parties on 17.6.2002 along with letter which is available on record of the Arbitrator at page No.198. Learned counsel for the appellant submits that letter dated FAO No.4870 of 2008 (O&M) -2- 17.6.2002 indicates the service of copy of the award only upon the Managing Director of the Punjab State Warehousing Corporation (by name) but it does not indicate that the copy of the arbitral award was ever sent to the appellant. This fact is not disputed by the counsel for the respondents. According to the counsel for the appellant, the learned Court below has erred in counting the period of limitation as it was under the impression that total days of limitation is 30 for challenging the award of the Arbitrator though the period is 90 days with a further extension of 30 days, in view of Section 34(3) of the Act. Since there was a total misunderstanding on the part of the counsel who had appeared for the appellant before the Court below, who had submitted that there is a delay of 12 days in filing of the appeal as he himself counted limitation of one month from 10.9.2002. As per Section 34(3) of the Act, an application for setting aside the arbitral award can be filed within a period of three months from the date of receipt of arbitral award which can further be extended for a period of one month and not thereafter. In the present case, admittedly, copy of the arbitral award was never sent by the Arbitrator to the appellant, therefore, limitation can be counted from 17.6.2002 as held by the learned Court below. If the limitation is to be counted from 10.9.2002 and as application has been filed on 27.10.2002 then it is well within limitation and as such, the appellants are entitled to address their grievance on merits before the Court below. In view of the above discussion, it is held that impugned order is patently illegal due to the misreading of the evidence of the Court below and hence the same is hereby set aside. The case is remanded back to the FAO No.4870 of 2008 (O&M) -3- Court below to decide the Objection under Section 34 of the Act on merits. The appeal is disposed of. The parties are directed to appear before District Judge, Ferozepur on 6.9.2010. (Rakesh Kumar Jain) 16.7.2010 Judge Meenu