Hi Style India Pvt. Limited v. Rakesh Corporation: Arbitration Award Challenge Dismissed

Headnote:

The Bombay High Court dismissed a petition under Section 34 of the Arbitration and Conciliation Act, 1996 challenging an ex parte arbitral award in favor of Rakesh Corporation. The Court held that the petition was barred by limitation as it was filed more than two years after the award was passed. The petitioner’s contentions regarding non-existence of arbitration agreement and alleged fraud were found to be afterthoughts, and the delay in approaching the Court further reinforced dismissal.

Background:

• The petitioner, Hi Style India Pvt. Limited, challenged an arbitral award dated 9 May 2018 passed by a sole arbitrator, which directed payment of Rs. 15,80,895/- to Rakesh Corporation, including principal, interest, and arbitration costs.

• The petitioner claimed that the arbitration agreement was non-existent because the invoice containing the arbitration clause was unsigned and Hi Style was not a Mahajan member. They alleged fraud by a former employee and argued the award was never properly received.

• Hi Style had repeatedly sought adjournments during arbitration and participated minimally, leading to an ex parte award.

Court’s Observations:

• Section 34 provides a 3-month limitation period to challenge an arbitral award, with an additional 30 days for condonation. The petition was filed well beyond this period, without seeking condonation.

• The arbitration clause in the invoice, though unsigned, was valid. Objections to the agreement should have been raised during arbitration under Section 16.

• The petitioner’s arguments on fraud and non-receipt of the award were afterthoughts and did not justify delay.

• Delay in restoration of the petition (over 2 years) further undermined the case.

• Knowledge of the award’s content through certified copies was sufficient to start limitation; absence of the original signed copy did not prevent limitation from running.

Legal Provisions Discussed:

• Section 34, Arbitration and Conciliation Act, 1996 – Setting aside of arbitral awards.

• Section 16, Arbitration and Conciliation Act, 1996 – Determination of existence or validity of arbitration agreement.

• Article 142, Constitution of India – Enforcement of decree or order.

Citation: 2025:BHC-OS:21462

Case: Hi Style India Pvt. Limited v. Rakesh Corporation

Court: High Court of Judicature at Bombay

Coram: Somasekhar Sundaresan, J.

Date of Decision: 19 November 2025

Arbitration Petition (L) No.: 1127 of 2018

Interim Application (L) No.: 15527 of 2024