The reasoning behind the court’s ruling was the principle of finality of arbitral awards. The court asserted that it would defeat the purpose of arbitration if the time of delivery of the award was determinant upon the actions of the parties. Instead, the award became final once the arbitrator published it. Even if the parties had not appraised themselves on the contents of these awards, the time for setting aside the award begun running from the time the arbitrator published the award and notified the parties of the same.
Section 35 (3) provides that an application to set aside an award may not be brought 90 days after the date on which the party making the application had received the award. The date of receipt is not determined by actual delivery of the award to the party. Instead, it refers to the date of publication of the award and a notification to the parties of the same by the arbitrator. Thus, if a party fails to file a setting aside application within 90 days after being notified on the publication of the award, the application will be time barred.
SUMMARY- MAHINDER SINGH CHANNA V NELSON MUGUK AND ANOTHER
RULING- MAHINDER SINGH CHANNA V NELSON MUGUK AND ANOTHER