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Date of Receipt of Arbitration Award
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Date of Receipt of Arbitration Award

XYZ a multinational Company went for Arbitration against one of the Government departments of Government of India. Since Government refused to change their standard arbitration clause in good faith XYZ signed the contract. Later disputes arose and the issues were referred to arbitration and the arbitrator was a Government officer. Right from the beginning the arbitrator was biased and as expected Arbitrator gave a one sided award in favor of the Government department violating all principles of law. XYZ received the award without any date and by an ordinary post from an Arbitrator, but the arbitrator sent the award by registered post two months earlier to the government department for whatever reasons best known to him. Hence XYZ filed an application seeking to set aside the award under S.34 of the Arbitration and Conciliation Act, 1996 within 30 days from the date of receipt. WE also produced the envelope in which the award was received by XYZ. The Government department contended that the challenge is time barred because they received the award two months before. But the High Court held that it is the duty of the Arbitrator to properly deliver the award to the parties because various rights of the parties including the challenge accrue from the date of the receipt of the award. Hence court said the envelope received by XYZ does not disclose the date of delivery and hence the challenge under S.34 cannot be said to be belated.