Dissenting opinions are not deemed integral to the arbitral award, and the timing of their submission and receipt does not influence the limitation period under Section 34(3) of the Act : Delhi High Court
In the case of Container Corporation of India Ltd. v. Roadwings International Pvt. Ltd., the Hon’ble Delhi High Court addressed several crucial issues concerning arbitral awards under the Arbitration and Conciliation Act, 1996:
(i) Whether a dissenting opinion forms part of the arbitral award for the purpose of challenging under Section 34 of the Act.
(ii) Whether the delivery of a dissenting opinion subsequent to the delivery of the majority award triggers the commencement of the limitation period for challenging the award.
(iii) Whether there is a requirement for a certified copy of the arbitral award for challenging under Section 34 of the Act.
Background:
The Arbitral Tribunal comprising three members issued the Majority Award on 01.06.2022, acknowledging a forthcoming dissenting opinion. This award, signed by all three members, was directly communicated to the parties on the same date. It explicitly mentioned the intention of one member to elaborate on differing viewpoints through a dissenting note to be submitted within ten days.
The Dissenting Opinion was subsequently completed and signed on 11.06.2022, and received by the Petitioner on 14.06.2022. Meanwhile, on 07.06.2022, the Arbitral Institution informed the parties about an error in the calculated fees, necessitating a re-fixation. The Respondent fulfilled their financial obligation and received the certified copy of the arbitral award on 22.06.2022. The Petitioner settled the outstanding balance on 12/14.07.2022, and after verification, received the certified copy of the award on 19.07.2022.
Relying on this document, the Petitioner filed a petition under Section 34 of the Act on 10.10.2022, asserting compliance with the permissible timeframe established by Section 34(3) of the Act.
Decision:
(i) An arbitral award is deemed "made" when finalized in writing, signed by the majority, and delivered to parties.
(ii) A majority award stands as an arbitral award, even without a dissenting opinion, and its finality isn't affected by later incorporation of dissenting views.
(iii) Dissenting opinions are not considered part of the arbitral award for Section 34 challenges.
(iv) The date of submission and receipt of the Dissenting Opinion doesn't affect the limitation period under Section 34(3) of the Act.