Introduction:

In a recent ruling, the Kerala High Court addressed the matter between Mathew P J and M/S. Cholamandalam Investment And Finance Co Ltd, highlighting the applicability of Section 5 of the Limitation Act in challenging arbitral awards under Section 34 of the Arbitration and Conciliation Act. Justice A. Badharudeen clarified that Section 5 of the Limitation Act cannot be invoked to condone delays in filing applications challenging arbitral awards, as Section 34 of the Arbitration Act already specifies a maximum limitation period of four months.

Arguments Presented: 

The appellants approached the High Court, seeking relief under Section 34 of the Arbitration and Conciliation Act, filing an arbitration appeal along with a delay petition under Section 5 of the Limitation Act. The delay of 1306 days in filing the appeal arose from arbitration proceedings initiated in 2014, culminating in an award against the appellants. The Court noted that the appellants also failed to contest the matter before the arbitrator and subsequently filed an original petition against the arbitral award after a delay of 1781 days.

Court’s Judgment: 

The Court emphasized that Section 34(3) of the Arbitration Act, coupled with its proviso, sets a specific four-month limitation for challenging arbitral awards. It held that the appeal filed beyond this period, along with the delay petition, was time-barred, and Section 5 of the Limitation Act could not be invoked. Consequently, the Court dismissed the arbitral appeal.