Limitation For Filing Application

Section 34(3) provides that an application for setting aside an arbitral award

must be made within 3 months of receiving the award or disposition of
application by the arbitral tribunal.

The importance of this is emphasized by Section 36 which provides that the

award becomes enforceable as soon as the limitation period under Section 34
expires.

A bare reading of Section 34(3) read with the proviso makes it abundantly clear
that the application for setting aside the award will have to be made within
three months. The period can further be extended, on sufficient cause being
shown, by another period of thirty days but not thereafter.

Section 29 (2) of the Limitation Act, provides that when any special statute
prescribes certain period of limitation as well as provision for extension upto
specified time limit, on sufficient cause being shown, then the period of
limitation prescribed under the special law shall prevail and to that extent the
provisions of the Limitation Act shall stand excluded. The provisions of Section
5 of the Limitation Act would not be applicable because of the provisions of
Section 29 (2) of the Limitation Act.1

Section 36 in THE ARBITRATION AND CONCILIATION ACT, 1996

36. Enforcement.—Where the time for making an application to set aside the
arbitral award under section 34 has expired, or such application having been
made, it has been refused, the award shall be enforced under the Code of Civil
Procedure, 1908 (5 of 1908) in the same manner as if it were a decree of the
Court.

Section 5 in The Limitation Act, 1963

1
Union of India v. Popular construction co. 2001 (45) ALR 531 (SC). CASE NOTE- Limitation - time barred -
Sections 5 and 34 of Limitation Act, 1963 - application challenging award on ground of limitation - appeal
against Order dismissing application - time limit prescribed under Section 34 to challenge an award is absolute
and unextendable by Court under Section 5 - provisions of Section 5 not applicable to application challenging
award - appeal dismissed.
5 Extension of prescribed period in certain cases. —Any appeal or any
application, other than an application under any of the provisions of Order XXI
of the Code of Civil Procedure, 1908 (5 of 1908), may be admitted after the
prescribed period, if the appellant or the applicant satisfies the court that he
had sufficient cause for not preferring the appeal or making the application
within such period. Explanation.— The fact that the appellant or the applicant
was misled by any order, practice or judgment of the High Court in ascertaining
or computing the prescribed period may be sufficient cause within the
meaning of this section.

Section 43 in THE ARBITRATION AND CONCILIATION ACT, 1996

43. Limitations.—
(1) The Limitation Act, 1963 (36 of 1963), shall apply to arbitrations
as it applies to proceedings in Court.
(2) For the purposes of this section and the Limitation Act, 1963 (36
of 1963), an arbitration shall be deemed to have commenced on the
date referred in section 21.
(3) Where an arbitration agreement to submit future disputes to
arbitration provides that any claim to which the agreement applies
shall be barred unless some step to commence arbitral proceedings
is taken within a time fixed by the agreement, and a dispute arises
to which the agreement applies, the Court, if it is of opinion that in
the circumstances of the case undue hardship would otherwise be
caused, and notwithstanding that the time so fixed has expired, may
on such terms, if any, as the justice of the case may require, extend
the time for such period as it thinks proper.
(4) Where the Court orders that an arbitral award be set aside, the
period between the commencement of the arbitration and the date
of the order of the Court shall be excluded in computing the time
prescribed by the Limitation Act, 1963 (36 of 1963), for the
commencement of the proceedings (including arbitration) with
respect to the dispute so submitted.
37. Appealable orders.
1.     An appeal shall lie from the following orders (and from no others) to the Court
authorised by law to hear appeals from original decrees of the Court passing the older,
namely :-
a.     granting or refusing to grant any measure under section 9;
b.    setting aside or refusing to set aside an arbitral award under section 34.
2.     Appeal shall also lie to a court from an order of the arbitral tribunal-
a.     accepting the plea referred to in sub-section (2) or sub-section (3) of section 16;
or
b.    granting or refusing to grant an interim measure under section 17.
3.     No second appeal shall lie from an order passed in appeal under this section, but
nothing in this section shall affect or take away any right to appeal to the Supreme
Court.