Arbitration Update | No Vacation Benefit When Award Is Challenged Even A Day After Three Months From Receipt Of The Award

The Supreme Court, in a recent case of State of West Bengal v Rajpath Contractors & Engineers Ltd., has held that the limitation period of three months prescribed under Sec on 34(3) of the Arbitration & Conciliation Act, 1996 ("Act") to challenge an arbitral award cannot be extended beyond the period of thirty days even on account of court closure or vacation.

Brief Facts:

The arbitral award in the present case ("Award") was passed and served on 30 June 2022. The Calcutta High Court was closed for pooja vacation from 1 October 2022 to 30 October 2022 (both days inclusive). On 31 October 2022, the Appellants filed a pe on under Sec on 34 of the Act challenging the Award. The Calcutta High Court dismissed the Sec on 34 pe on on the grounds of limitation. It was held that the period of limitation expired on 30 September 2022. Therefore, the appellants are not entitled to the benefit of Sec on 4 of the Limitation Act, 1963 ("Limitation Act"). Sec on 4 of the