ANILKUMAR JINABHAI PATEL (D) THR. LRS. & ANR.versusPRAVINCHANDRA JINABHAI PATEL AND ORS.

718                      [2018]REPORTS
               SUPREME COURT   3 S.C.R. 718                  [2018] 3 S.C.R.


A         ANILKUMAR JINABHAI PATEL (D) THR. LRs. & ANR.
                                        v.
             PRAVINCHANDRA JINABHAI PATEL AND ORS.
                      (Civil Appeal No. 3313 of 2018 Etc.)
B                              MARCH 27, 2018
               [R. K. AGRAWAL AND R. BANUMATHI, JJ.]
            Arbitration and Conciliation Act, 1996:
             ss. 31(5) and 34 – Arbitration award – Petition by appellant
C     No. 1 u/s. 34 for setting aside the award, filed – Award set aside by
      District Judge for non-compliance of s. 31(5) – High Court held
      that the petition u/s. 34 was time barred and hence was dismissed –
      On appeal, held: Facts and circumstances of the case show that
      appellant No. 1 was authorized by his family members to receive a
D     copy of the award and act on their behalf – Service of arbitral
      award on appellant No. 1 amounts to service on his family members
      (other appellants & respondent) and hence cannot plead
      non-compliance of s. 31(5) – Petition u/s. 34 was therefore barred
      by limitation.

E           s. 34 Proviso – Limitation period for – Condonation of – Held:
      Proviso to s. 34 gives discretion to the Court to condone the delay
      for a sufficient cause, but such discretion cannot be extended
      beyond the period of thirty days – Limitation – Delay-Condonation
      of.
F           Dismissing the appeals, the Court
            HELD: 1. Section 34 of Arbitration and Conciliation Act,
      1996 provides for filing of an application for setting aside an
      arbitral award. Section 34(3) provides that an application for setting
      aside an award shall not be entertained by the court if it is made
G     after three months have elapsed from the date on which the
      applicant had received the arbitral award. The proviso to Section
      34 further provides that if the court is satisfied that the applicant
      was prevented by sufficient cause from making the application
      within the prescribed time, it may entertain the application within
H
                                     718
       ANILKUMAR JINABHAI PATEL (D) THR. LRs. v.                       719
           PRAVINCHANDRA JINABHAI PATEL

a further period of thirty days ‘but not thereafter’. The words ‘but   A
not thereafter’ in the proviso are of mandatory nature, and couched
in the negative, and leave no room for doubt. Proviso to Section
34 gives discretion to the court to condone the delay for a
sufficient cause, but that discretion cannot be extended beyond
the period of thirty days, which is made exclusively clear by use
                                                                       B
of the words ‘but not thereafter’. [Paras 13 and 14] [725-E]
[726-B-D]
      State of Arunachal Pradesh v. Damini Construction Co.
      (2007) 10 SCC 742 – relied on.
       2. The undertaking by appellant No. 1, in the award dated       C
03.11.1996 that he and his family members agreed and approved
the award shows that he was acting for himself and on behalf of
his family members. Award dated 07.07.1996 was also received
by him for himself and on behalf of his family members. In interim
MOU dated 29.06.1996, Appellant No. 1 signed for self and as a         D
power of attorney holder for his wife and his all sons and
daughters-in-law. Challenging the award dated 07.07.1996, he
and his family members have filed a single petition under Section
34 of the Act. Likewise they have also filed a single petition for
amending the arbitration petition. Appellant No. 1 being the head
of his family, was a person directly connected with and involved       E
in the proceeding and was also in control of the proceeding. Being
head of the family, he would have been the best person to
understand and appreciate the arbitral award and take a decision
as to whether an application under Section 34 of the Act was
required to be filed or not. In such facts and circumstances,          F
service of arbitral award on appellant No. 1 amounts to service
on the other appellant Nos.1 (a) to 1(d) and respondent No.10
and they cannot plead non-compliance of Section 31(5) of the Act.
The application filed under Section 34 of the Act by appellant No.
1 and appellant Nos. 1(a) to 1(d) and respondent No.10 was barred
by limitation. [Paras 22, 23 and 26] [729-F-H; 730-A-B;                G
731-D]
      Union of India v. Tecco Trichy Engineers and
      Contractors (2005) 4 SCC 239 ; State of Maharashtra
      and Ors. v. Ark Builders Pvt. Ltd. (2011) 4 SCC 616 –
      referred to.                                                     H
720            SUPREME COURT REPORTS                      [2018] 3 S.C.R.


A                            Case Law Reference

            (2007) 10 SCC 742           relied on            Para 14

            (2005) 4 SCC 239            referred to          Para 15

B           (2011) 4 SCC 616            referred to          Para 16

            CIVIL APPELLATE JURISDICTION : Civil Appeal No. 3313
      of 2018.

            From the Judgment and Order dated 27.03.2012 of the High Court
C     of Judicature of Bombay Bench at Aurangabad in Writ Petition
      No. 4669 of 2011

                                       WITH

            Civil Appeal No. 3314 of 2018.
D           Basant R., C.A. Sundaram, Ms. Meenakshi Arora, Sr. Advs.,
      Prashant R. Dahat, Puneet Yadav, T. R. B. Sivakumar, Prashant
      R. Dahat, Zafar Inayat, M/s K. J. John And Co, Tapesh Kumar
      Singh, Mohd. Waquas, Aditya Pratap Singh, Aniruddha P. Mayee,
      Shashibhushan Adgaonkar, Avnish M. Oza, Chirag Jain, Advs. for the
E     appearing parties.

            The Judgment of the Court was delivered by

            R. BANUMATHI, J. 1. Leave granted.

            2. Appellants have filed these appeals challenging the judgment
F
      dated 27.03.2012 of the High Court of Judicature at Bombay Bench at
      Aurangabad in W.P. No. 4669 of 2011 in and by which the High Court
      held that challenge to the arbitral award dated 07.07.1996 was time
      barred under the provisions of Section 34 of the Arbitration and
      Conciliation Act, 1996 (for short “the Act”).
G
            3. The facts of the case are that the appellant No.1/Anilkumar
      Patel and respondent No.1/Pravinchandra Patel are real brothers and
      sons of Jinabhai. They had three other brothers who were already
      separated. So far as the parties before us, they are related as
      under:-
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    ANILKUMAR JINABHAI PATEL (D) THR. LRs. v.     721
PRAVINCHANDRA JINABHAI PATEL [R. BANUMATHI, J.]

                                                  A




                                                  B




                                                  C




                                                  D




                                                  E




                                                  F




                                                  G




                                                  H
722            SUPREME COURT REPORTS                          [2018] 3 S.C.R.


A             Pravinchandra Patel and Anilkumar Patel together started the
      business of fertilizer manufacturing, chemical and real estate at Jalgaon.
      In the course of business, they set up number of companies and partnership
      concerns and acquired numerous immovable and movable properties.
      Pravinchandra Patel has three daughters, who are married and settled
      outside Jalgaon. Anilkumar Patel has three sons, who are residing with
B
      him at Jalgaon. As children of Pravinchandra Patel and Anilkumar Patel
      grew up and in order to avoid any possible litigation, both the brothers
      and their family members decided to make division of the assets of the
      family. For this purpose, they approached Latikaben (respondent No.12)
      and Bhikhalal Nathalal Patel (respondent No.11) who is the sister and
C     brother-in-law of Pravinchandra Patel and Anilkumar Patel and parties
      have agreed to appoint them as arbitrators. It culminated into an MOU
      dated 21.05.1996 appointing Latikaben and Bhikhalal Nathalal Patel as
      arbitrators which was signed by all the members of the family that is the
      appellants and respondents.
D            4. While arbitrators were away to Rajkot due to emergency work,
      both Pravinchandra Patel and Anilkumar Patel decided to streamline the
      ongoing business of firms and companies by signing of an interim MOU
      on 29.06.1996 (IMOU). The covenants of the said IMOU covered the
      matters relating to bank accounts and withdrawal power, NPK allocation
      etc. The said IMOU was signed by Pravinchandra Patel for himself and
E     on behalf of his family members. Similarly, Anilkumar Patel signed in
      the IMOU for himself and also as a power of attorney holder for his
      wife, his all sons and daughter-in-law.
             5. The arbitrators arrived at Jalgaon on 04.07.1996 and continued
      with the arbitration proceeding and passed the award on 07.07.1996
F     (with a mention of IMOU dated 29.06.1996) under which certain
      properties were given to Pravinchandra Patel and Anilkumar Patel
      whereas some other assets were kept undivided with equal rights and
      interest thereon of both groups. The award was written in Gujarati
      language by hand by the arbitrators and signed by the arbitrators. The
G     copy of the award was given to Pravinchandra Patel and Anilkumar
      Patel by arbitrators in person which was duly acknowledged by them.
      Copy of the award bears signature of both Pravinchandra Patel and
      Anilkumar Patel with recital that they and their family members will act
      as per the award and will give effect to the same. Then by an award

H
     ANILKUMAR JINABHAI PATEL (D) THR. LRs. v.                               723
 PRAVINCHANDRA JINABHAI PATEL [R. BANUMATHI, J.]

dated 03.11.1996, the issues between appellants and respondents were         A
finally decided taking note of earlier awards. According to Pravinchandra
Patel, Anilkumar Patel accepted and acted upon the awards on more
than one occasion.
       6. However, Anilkumar Patel and his family members (appellant
Nos. 1(a) to 1(d) and respondent No.10) filed an arbitration petition        B
No.202 of 2005 under Section 34 of the Act before the District Judge,
Jalgaon on 29.11.2005 challenging the award dated 07.07.1996 contending
that they learnt about the arbitral award only on 11.08.2005 when they
were served with the notice of execution petition filed by Pravinchandra
Patel alongwith the xerox of the award dated 07.07.1996. Therefore, as
per the appellant-Anilkumar Patel, period of limitation starts only from     C
11.08.2005, from the date of their receipt of copy of the award. It was
further alleged that, appellant Nos. 1(a) to 1(d) and respondent No.10
were not included as party in the award dated 07.07.1996 and the award
is not binding on them. They have, inter alia, alleged that the award is
a false and fraudulent document. They also emphasized that the signature     D
of Anilkumar Patel in the arbitral award showing his acknowledgement
was forged and therefore, could not be acted upon.
       7. Later on, an application came to be filed by Anilkumar Patel
for himself and on behalf of his family members for an amendment
under Order VI Rule 17 C.P.C. stating that the arbitration petition No.202   E
of 2005 filed initially, did not contain the challenge to award dated
03.11.1996 and hence, by an amendment sought to challenge award
dated 03.11.1996 as well. The said application was dismissed on
30.06.2006 by the District Court on the ground of limitation which was
further challenged through W.P. No.5502 of 2006 before the High Court.
The same was remanded to the District Judge on 21.08.2006 for                F
consideration of the matter afresh. After remand, the District Judge by
order dated 28.09.2006 again dismissed the amendment application on
the ground of limitation. The said order dated 28.09.2006 was again
challenged by Anilkumar Patel under W.P. No.7614 of 2006. The High
Court vide order dated 13.11.2006 dismissed the writ petition observing      G
that Anilkumar Patel is adopting tactics of approbate and reprobate and
Anilkumar Patel is acting as per his convenience by denying the knowledge
of award dated 03.11.1996 in some court proceedings though in some
other proceedings, he has relied on the said award and sought to take
advantage on the basis of the said award.
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724             SUPREME COURT REPORTS                           [2018] 3 S.C.R.


A            8. Insofar as the challenge to the award dated 07.07.1996, the
      District Judge vide order dated 14.02.2011 allowed the application under
      Section 34 of the Act inter alia, holding that the period of limitation
      prescribed under Section 34(3) of the Act is to be computed from the
      point of time when the party concerned received the copy of the arbitral
      award. The District Judge set aside the award holding that number of
B
      serious issues have been raised in application under Section 34 and there
      is nothing to show that Anilkumar Patel was authorised by the other
      applicants to receive a copy of the award on their behalf and it cannot
      be said that the appellant Nos.1(a) to 1(d) and respondent No.10 had
      received the award in terms of Section 31(5) of the Act.
C            9. Being aggrieved, Pravinchandra Patel filed W.P. No.4669 of
      2011. The High Court by the impugned judgment dated 27.03.2012 set
      aside the order of the District Judge holding that the petition filed in the
      year 2005 under Section 34 of the Act was time barred. The High Court
      held that sofaras the award dated 03.11.1996, the findings in W.P.No.7614
D     of 2006 have attained finality which has foreclosed the right of Anilkumar
      Patel to challenge the award dated 07.07.1996. The High Court
      enumerated various circumstances to hold that Anilkumar Patel and his
      family members were well aware of the award dated 07.07.1996. The
      High Court also relied upon various correspondence between the parties,
      legal proceedings etc. (O.A. No.298A/2001 etc.) to arrive at the
E     conclusion that Anilkumar Patel received the award dated 07.07.1996.
      On those findings, the High Court held that the petition filed in the year
      2005 under Section 34 of the Act is time barred and the petition filed
      under Section 34 of the Act challenging the award dated 07.07.1996
      came to be dismissed.
F            10. On behalf of legal heirs of Anilkumar Patel, it was contended
      that as contemplated under Section 31(5) of the Act, copy of the award
      dated 07.07.1996 was not served upon the family members of Anilkumar
      Patel and mere knowledge as to the existence of the award would not in
      any manner result in the commencement of period of limitation. The
G     learned senior counsel for the appellants contended that the limitation
      period can be computed only from the day on which the original signed
      copy of the arbitral award is received under the provision of Section
      31(5) of the Arbitration and Conciliation Act, 1996.
           11. Per contra, learned senior counsel for the respondents has
H     drawn our attention to number of documents to refute appellant’s
     ANILKUMAR JINABHAI PATEL (D) THR. LRs. v.                               725
 PRAVINCHANDRA JINABHAI PATEL [R. BANUMATHI, J.]

contention wherein appellant-Anilkumar Patel himself admitted many           A
times that the arbitral award was within his knowledge and used the
awards dated 07.07.1996 and 03.11.1996 on number of occasions
including legal proceedings. Further contention of Pravinchandra Patel
is that arbitrators who were none other than their sister Latikaben
(respondent No.12) and Bhikhalal Nathalal Patel (respondent No.11)
                                                                             B
husband of Latikaben who came from Rajkot to Jalgaon to settle the
matter amicably between two brothers which was at the instance of
both the parties and while so, the award cannot be assailed as fabricated
or a biased one.
      12. On the aforesaid rival contentions advanced on behalf of both
the parties and upon perusal of the impugned judgment and materials          C
placed on record, the following points arise for consideration:-
      (1) Whether Anilkumar Patel represented his family in the
          arbitration proceedings and whether respondents are right in
          contending that receipt of copy of award by Anilkumar Patel
          was for himself and on behalf of his family members?               D

      (2) Whether the High Court was right in holding that the application
          under Section 34 of the Arbitration and Conciliation Act, 1996
          for setting aside the award was barred by limitation?
       13. Section 34 of the Act provides for filing of an application for   E
setting aside an arbitral award. Sub-section (3) of Section 34 of the Act
lays down the period of limitation for making the application. Section
34(3) of the Arbitration and Conciliation Act, 1996, reads as follows:-
      34. Application for setting aside arbitral award.-(1) Recourse
      to a Court against an arbitral award may be made only by an            F
      application for setting aside such award in accordance with sub-
      section (2) and sub-section (3).
      (2)        .........
      (3) An application for setting aside may not be made after three
      months have elapsed from the date on which the party making            G
      that application had received the arbitral award or, if a request
      had been made under Section 33, from the date on which that
      request had been disposed of by the arbitral tribunal:
           Provided that if the Court is satisfied that the applicant was
      prevented by sufficient cause from making the application within       H
726             SUPREME COURT REPORTS                              [2018] 3 S.C.R.


A            the said period of three months it may entertain the application
             within a further period of thirty days, but not thereafter.
             14. Section 34(3) provides that an application for setting aside an
      award shall not be entertained by the court if it is made after three
      months have elapsed from the date on which the applicant had received
B     the arbitral award. The proviso to Section 34 further provides that if the
      court is satisfied that the applicant was prevented by sufficient cause
      from making the application within the prescribed time, it may entertain
      the application within a further period of thirty days ‘but not thereafter’.
      (vide State of Arunachal Pradesh v. Damini Construction Co.(2007)
      10 SCC 742). The words ‘but not thereafter’ in the proviso are of
C     mandatory nature, and couched in the negative, and leave no room for
      doubt. Proviso to Section 34 gives discretion to the court to condone the
      delay for a sufficient cause, but that discretion cannot be extended beyond
      the period of thirty days, which is made exclusively clear by use of the
      words ‘but not thereafter’.
D           15. In Union of India v. Tecco Trichy Engineers and
      Contractors(2005) 4 SCC 239, a three Judge Bench of this Court, in
      respect to the issue of limitation for filing application under Section 34 of
      the Act for setting aside the arbitral award, held that the period of limitation
      would commence only after a valid delivery of an arbitral award takes
E     place under Section 31(5) of the Act. In para (8), this Court held as
      under:-
             “8. The delivery of an arbitral award under sub-section (5) of
             Section 31 is not a matter of mere formality. It is a matter of
             substance. It is only after the stage under Section 31 has passed
F            that the stage of termination of arbitral proceedings within the
             meaning of Section 32 of the Act arises. The delivery of arbitral
             award to the party, to be effective, has to be “received” by the
             party. This delivery by the Arbitral Tribunal and receipt by the
             party of the award sets in motion several periods of limitation
             such as an application for correction and interpretation of an award
G            within 30 days under Section 33(1), an application for making an
             additional award under Section 33(4) and an application for setting
             aside an award under Section 34(3) and so on. As this delivery of
             the copy of award has the effect of conferring certain rights on
             the party as also bringing to an end the right to exercise those
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     ANILKUMAR JINABHAI PATEL (D) THR. LRs. v.                                727
 PRAVINCHANDRA JINABHAI PATEL [R. BANUMATHI, J.]

      rights on expiry of the prescribed period of limitation which would     A
      be calculated from that date, the delivery of the copy of award by
      the Tribunal and the receipt thereof by each party constitutes an
      important stage in the arbitral proceedings.”
       16. In Stateof Maharashtra and Ors. v. Ark Builders Pvt.
Ltd.,(2011) 4 SCC 616, while following the judgment in Tecco Trichy           B
Engineers case, held that the expression “...party making that
application had received the arbitral award...” cannot be read in
isolation and it must be understood that Section 31(5) of the Act requires
a signed copy of the award to be delivered to each party. By cumulative
reading of Section 34(3) and Section 31(5) of the Act, it is clear that the
limitation period prescribed under Section 34(3) of the Act would             C
commence only from the date of signed copy of the award delivered to
the party making the application for setting it aside.
       17. Contention of the appellants is that the other members of
Anilkumar’s family viz., appellant Nos. 1(a) to 1(d) and respondent
No.10, appellant No.1(d) and respondent No.10 did not receive the copy        D
of the award and that they had knowledge of the award only when the
execution petition was filed and when they received the notice in the
execution petition. Contention of appellant Nos. 1(a) to 1(d) and
respondent No.10 is that in terms of Section 31(5) of the Act, copy of
the award to be delivered to each party to enable them to challenge the       E
award and since the copy of the award not individually served to them,
the period of limitation would start only from the date when they got the
copy of the award.
      18. As pointed out earlier, Anilkumar Patel has signed the award
and received the copy of the award with the following endorsement:-           F
      “For myself and on behalf of my family members”.
        Whether the receipt of the award by Anilkumar Patel with the
above endorsement could be construed as the receipt of the award by
his family members- appellant Nos.1(a) to 1(d) and respondent No.10,
is the point falling for consideration.                                       G
       19. In MOU dated 21.05.1996, Pravinchandra Patel and Anilkumar
Patel have appointed their sister Latikaben and her husband Bhikhalal
Nathalal Patel for effecting partition between the two families and both
the families have consented for the same. The MOU was signed by
                                                                              H
728             SUPREME COURT REPORTS                            [2018] 3 S.C.R.


A     Pravinchandra Patel and his wife and daughters (respondents No.1 to
      5) and Anilkumar Patel and his wife and his three sons and one daughter-
      in-law (appellant No.1 (dead) and appellant Nos. 1(a) to 1(d) and
      respondent No.10). The MOU appointing arbitrators (21.05.1996)
      stipulates that: (i) the award to be in writing; and (ii) to furnish copy of
      the award to each of the members of the families. The relevant portion
B
      of MOU reads as under:-
            “.....The arbitrators shall write down the particulars of the partition
            as well as the terms and conditions for effecting the partition and
            the arbitrators shall sign it. The arbitrators shall make as many
            copies of it as there are members and shall give each member a
C           copy of it. And after that both the families shall act as per the
            particulars of partition given by the arbitrators and get the properties
            and business properties partitioned....”
             20. As pointed out earlier, while arbitrators were away to Rajkot
      due to emergency work, both Pravinchandra Patel and Anilkumar Patel
D     decided to streamline the ongoing business of firms and companies by
      signing an interim MOU on 29.06.1996 (IMOU). The covenants of the
      said IMOU covered the matters relating to bank account and withdrawal
      of power, NPK allocation etc. The said IMOU was signed by
      Pravinchandra Patel with the following endorsement:-
E           “P.J. Patel (Group No.1) for self and also as Power of Attorney
            Holder for wife and all daughters”.
            Similarly in the said IMOU, Anilkumar Patel signed for himself
      and on behalf of his family members, as seen from the following
      endorsement:-
F           “A.J. Patel (Group No.2) for Self and also as Power of Attorney
            Holder for wife, all sons and daughter-in-law.”
             21. The award dated 07.07.1996 was signed by both the arbitrators.
      The award was also signed by Pravinchandra Patel and Anilkumar Patel.
      Both of them have undertaken to implement the award with their free
      will and pleasure, as seen from the following:-
G
             “As per this Arbitration “Award”, both the groups and their family
             members have to honestly, wholeheartedly and faithfully act in
             accordance with and implement the transaction of the property,
             the IMOU which is now considered as MOU and the accounting
             chart in respect of the companies and the firms.
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            ........
     ANILKUMAR JINABHAI PATEL (D) THR. LRs. v.                                 729
 PRAVINCHANDRA JINABHAI PATEL [R. BANUMATHI, J.]

      The aforesaid Arbitration Award I agreed to and approved of by           A
      and our descendant guardian and heirs. We undertake to implement
      the same with free-will and pleasure.”
      After their signature in the award which is in Gujarati language
for having received the copy of the award, Pravinchandra Patel and
Anilkumar Patel have stated as under:-                                         B
        “....For ourselves and on behalf of our family members.”
       It is pertinent to note that the award also referred to IMOU dated
29.06.1996 in and by which the members of the respective families have
authorized Pravinchandra Patel and Anilkumar Patel to act on behalf of
their family members.                                                          C
      22. The award dated 03.11.1996 also refers to the award dated
07.07.1996. The award dated 03.11.1996 was also signed by
Pravinchandra Patel and Anilkumar Patel and both of them have
undertaken that the arbitration award is duly agreed and approved by
them and their family members and further undertaken to act in                 D
accordance with the award and to give effect to the same. The said
endorsement in the award dated 03.11.1996 reads as under:-
        “The aforesaid arbitration award is duly agreed to and approved
      of by me and my family members, descendants heirs and other.
       My family members and I absolutely assure to act in accordance          E
      with the award and to give effect to same.”
        As discussed earlier, Anilkumar Patel was unsuccessful in his
attempt to challenge the award dated 03.11.1996 which has attained
finality in terms of the findings in W.P.No.7614 of 2006. Anilkumar Patel’s
undertaking in the award dated 03.11.1996 that he and his family members       F
agreed and approved the award shows that Anilkumar Patel was acting
for himself and on behalf of his family members.
        23. Award dated 07.07.1996 was received by Anilkumar Patel
for himself and on behalf of his family members. In interim MOU dated
29.06.1996, Anilkumar Patel signed for self and as a power of attorney         G
holder for his wife and his all sons and daughter-in-law. Challenging the
award dated 07.07.1996, Anilkumar Patel and his family members have
filed a single petition under Section 34 of the Act. Likewise they have
also filed a single petition for amending the arbitration petition No.202 of
2005. Anilkumar Patel, being the head of his family, was a person directly
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730            SUPREME COURT REPORTS                          [2018] 3 S.C.R.


A     connected with and involved in the proceeding and was also in control of
      the proceeding. Being head of the family, Anilkumar Patel would have
      been the best person to understand and appreciate the arbitral award
      and take a decision as to whether an application under Section 34 of the
      Act was required to be filed or not. In such facts and circumstances, in
      our considered view, service of arbitral award on Anilkumar Patel amounts
B
      to service on the other appellant Nos.1(a) to 1(d) and respondent No.10
      and they cannot plead non-compliance of Section 31(5) of the Act.
             24. The High Court has enumerated various circumstances which
      indicate that Anilkumar Patel was well aware of the award dated
      07.07.1996 and also relied upon the award in internal communication
C     between the parties and various legal proceedings. “Inter Office Memo”
      dated 22.07.1996, sent by Anilkumar Patel to Pravinchandra Patel,
      seeking for delivery of file of Gat No.266/2 of Bambhori, Taluka Brandol.
      Anilkumar Patel has stated that in Gat No.266/2 of Bambhori, agricultural
      land has come to his share and since some dispute has been raised by
D     the party by whom the sale-deed is to be executed, Anilkumar Patel
      requested to handover the file maintained in connection with the
      agricultural land mentioned in Gat No.266/2. The said Inter Office Memo
      clearly shows that even on 22.07.1996, Anilkumar Patel had acted upon
      the award dated 07.07.1996.
E            25. Central Bank of India has filed recovery proceeding in
      O.A.No.298-A/2001 against Pravinchandra Patel, M/s. Patel
      Narayandas Bhagwandas Fertilizers Private Limited and others. In the
      said proceeding before DRT, Anilkumar Patel has referred to the
      arbitration award passed in July, 1996 and that he has no interest in M/s.
      Patel Narayandas Bhagwandas Fertilizers Private Limited. Based on
F     such stand taken by Anilkumar Patel in O.A.No.298-A/2001, DRT
      observed that Anilkumar Patel had resigned from the Directorship of
      the said company and exonerated him from the liability to the bank and
      dismissed O.A.No.298-A/2001 against Anilkumar Patel and Atulkumar
      Maganlal Patel. The High Court referred to the said DRT proceedings
G     and various other circumstances in which Anilkumar Patel had taken
      advantage of arbitration award and the High Court held as under:-
            “....The respondents, obviously, wherever it was possible for them,
            at several places, took advantage of the arbitration award and
            now since obligation on their part is to be complied in favour of
H
      ANILKUMAR JINABHAI PATEL (D) THR. LRs. v.                                731
  PRAVINCHANDRA JINABHAI PATEL [R. BANUMATHI, J.]

       the petitioner, have started challenging the award, after nine          A
       years.....”
       Various circumstances brought on record clearly show that
Anilkumar Patel was authorized by other appellant Nos. 1(a) to 1(d) and
respondent No.10 to receive copy of the award and act on their behalf
and we find no reason to take a different view from that of the High           B
Court.
       26. As rightly observed by the High Court, Anilkumar Patel has
gone to the extent of even disputing his signature in the award dated
07.07.1996 by drafting choreographed petition. Having accepted the
award through Anilkumar Patel, being the head of the family, appellant         C
Nos. 1(a) to 1(d) and respondent No.10 cannot turn round and contend
that they had not received the copy of the award. The High Court
rightly held that “....Receiving the copy by Anilkumar on behalf of
himself and respondent nos. 2 to 6, under an acknowledgment, is in
terms of compliance of Section 31(5) of the Act and Section 34(3)
thereof.....”and that the application filed under Section 34 of the Act by     D
Anilkumar Patel and appellant Nos. 1(a) to 1(d) and respondent No.10
was barred by limitation. We do not find any good ground to interfere
with the impugned judgment.
       27. In the result, the appeals are dismissed. No costs.
                                                                               E

Kalpana K. Tripathy                                       Appeals dismissed.




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