By Chakrapani Misra, Sairam Subramanian, Urvashi Mehta
By an order dated 8 August 2018 passed in M/s Ved Prakash Mithal and sons v Union of India (Special Leave to Appeal (C) No(s). 20195/2017), the Supreme Court of India (the Court) has clarified the issue regarding the commencement of limitation period in filing an application to set aside an award under Section 34 of the Arbitration and Conciliation Act, 1996 (as amended) (Act).
The Court has inter alia held that Section 34(3) of the Act specifically provides for the date on which the application under Section 33 of the Act which deals with interpretation and correction of clerical errors in an award etc. has been ‘disposed of’ by the Arbitral Tribunal. Therefore, the limitation period shall commence from the date of such disposal of an award which includes the date of disposal of an application filed by the parties under Section 33 of the Act.