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Dec 30, 2019

SC rules on Exclusion of Time spent before a Court not having Jurisdiction for determining the Period for challenging an Arbitral Award

Under Section 34(3) of the Arbitration and Conciliation Act, 1996, an award has to be challenged within three months from the date of the award, with a 30-day grace period where the Court may condone the delay, but not thereafter. In Oriental Insurance Co. Ltd. v. M/s Tejparas Associates & Exports Pvt. Ltd.[1], the appellant had filed a petition against an arbitral award before a court not having jurisdiction. SC held that the time spent before a wrong forum can be excluded when the application is re-presented before the court having jurisdiction, only if the proceeding was bona fide in the court without jurisdiction.

[1] (2019) 9 SCC 435

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