The State of West Bengal appointed the respondent as a contractor for bridge construction. Following a dispute, the respondent invoked arbitration, resulting in an award directing the appellants to pay Rs.2,11,67,054 to the respondent. The appellants’ counterclaim was dismissed, and they received the award on June 30, 2022. They filed a petition under Section 34 of the Arbitration and Conciliation Act on October 31, 2022, which the High Court dismissed as time-barred. The High Court held that the limitation period expired on September 30, 2022, and the appellants were not entitled to the benefit of Section 4 of the Limitation Act. The appellants appealed this decision, but the Supreme Court upheld the High Court’s ruling.

Factual Aspects

1. Appointment and Dispute:

   • The respondent was appointed as a contractor by the State of West Bengal.
   • Dispute led to arbitration, resulting in an award on June 30, 2022.

2. Arbitral Award:

   • The Arbitral Tribunal directed the appellants to pay Rs.2,11,67,054 with interest.
   • Appellants' counterclaim was dismissed.
   • The award was received on June 30, 2022.

3. Filing of Petition:

   • High Court was closed for pooja vacation from October 1 to October 30, 2022.
   • Appellants filed the petition under Section 34 on October 31, 2022.
   • High Court dismissed the petition on May 4, 2023, citing the limitation period expired on September 30, 2022.

Submissions

1. Appellants' Argument:

   • Limitation should be calculated from July 1, 2022.
   • Filing on October 31, 2022, should be within the limitation period due to court closure.
   • Relied on Section 9 of the General Clauses Act and a precedent (State of Himachal Pradesh v. Himachal Techno Engineers).

2. Respondent's Argument:

   • Supported High Court's findings.
   • Section 4 of the Limitation Act applies only within the prescribed period of limitation (three months in this case).
   • Cited precedents (Assam Urban Water Supply & Sewerage Board v. Subash Projects & Mktg. Ltd. and Union of India v. Popular Construction Company).

Our View

1. Limitation Period:

   • Limitation starts from July 1, 2022, ending on September 30, 2022.
   • Section 12(1) of the Limitation Act excludes the day of receiving the award.
   • Section 43 of the Arbitration Act applies the Limitation Act to arbitrations.

2. Section 4 of the Limitation Act:

   • Section 4 applies when the prescribed period ends on a day when the court is closed.
   • "Prescribed period" does not include the 30-day extension under Section 34(3) of the Arbitration Act.
   • The period of three months expired on September 30, 2022.

3. Court's Decision:

   • High Court correctly held the petition was time-barred.
   • The petition filed on October 31, 2022, was beyond the permissible period.
   • Appeal dismissed, upholding the High Court’s decision.