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When the law contemplates handing over of the arbitration award to the parties themselves, mere handing over of the arbitration award to the advocate representing a party to a dispute is not enough.
Upholding the view taken by the Division Bench of the Delhi High Court, the Supreme Court in Benarsi Krishna Committee and Others v. Karmyogi Shelters Pvt Ltd pointed out that an advocate to whom vakalatnama is given by his principal finishes his role after the hearings are over. The arbitration tribunal, instead of handing over a copy of its award to the respondent, chose to hand it over to its advocate. Completely in the dark about the award and its contents, the respondent was unable to challenge it before the Court within the statutory limitation period of three months.
The Apex Court upheld its contention that in such circumstances the limitation period should be computed only from the date the copy of the arbitration award came to its possession.
(The author is a New Delhi-based chartered accountant)
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