Who Is The 'Right Authority' For Valid Service Of Arbitral Awards On Government Entities?

Introduction

When it comes to arbitral awards against government departments or public authorities, the question is often not 'if' but 'when' the period begins for challenging the award. Is handing over the award to any officer within the department enough, or should it be given to any specific officer who is aware of the arbitration proceedings?

The Hon'ble Supreme Court in Motilal Agarwala vs. State of West Bengal & Anr.¹ has held that service of an arbitral award on a government official who is not connected with or aware of the arbitration proceedings does not constitute a valid service. This implies that the limitation period for filing a challenge under Section 34 of the Arbitration and Conciliation Act, 1996 ("the Act") will not commence in such circumstances.