30-Day Limit For Correcting Award Is Inflexible, Applies To NH Act Arbitration: Karnataka High Court
The Karnataka High Court has held that the 30-day limit for seeking correction or interpretation of an arbitral award cannot be extended, and a belated application cannot revive the time limit for challenging the award, including in arbitrations under the National Highways Act, 1956.
A Division Bench of Chief Justice Vibhu Bakhru and Justice K.S. Hemalekha dismissed an appeal filed by the National Highways Authority of India (NHAI) against the 13 February 2026 order of the Principal District and Sessions Judge, Bengaluru Rural, which had dismissed NHAI's Section 34 petition and confirmed the arbitral award. The judges held:
“We do not find any basis for the said contention. Section 3G(6) of the NH Act expressly provides that the provisions of the A&C Act would apply to arbitration under the NH Act, subject to the provisions of the NH Act. There is no provision under the NH Act, which would exclude the time period stipulated under Section 33 of the A&C Act.”
The dispute concerned compensation payable to landowner C. Pramod for 1,398 sq. m. of land acquired for widening NH-275. An original award dated 5 January 2017 determined the compensation at Rs. 4.0 crores.
A subsequent arbitral award dated 1 December 2023, received by NHAI on 8 December 2023, enhanced the compensation by applying the guideline value of Rs. 19,380 per sq. m.
NHAI filed an application under Section 33 on 9 May 2024 challenging the valuation. Section 33 permits a party to seek correction or interpretation of an arbitral award. The Arbitral Tribunal rejected NHAI's application on 13 June 2024 as time barred.
The Principal District and Sessions Judge, Bengaluru Rural, subsequently dismissed NHAI's petition under Section 34 on 13 February 2026, holding that the award was neither patently illegal nor opposed to public policy, and confirmed the award. Section 34 provides for a challenge to an arbitral award on specified grounds.
The High Court held that a Section 33 application must be filed within 30 days of receipt of the award, unless the parties agree otherwise, and cannot be used to extend an already expired limitation period for a Section 34 challenge. It observed:
“The period within which an application to set aside an arbitral award can be made is inflexible. The application may be made within a period of three months from the date of the receipt of the arbitral award. In terms of the proviso to Section 34(3) of the A&C Act, this period can be extended but not beyond a period of 30 (thirty) days. The period within which an application to set aside an award can be made begins from the date the copy of the arbitral award is received.”
The Bench further held that filing a Section 33 application within the prescribed period is a jurisdictional condition for the Arbitral Tribunal to exercise its powers under the provision.
Rejecting NHAI's argument concerning statutory arbitration under the National Highways Act, it noted that Section 3G(6) expressly provides that the provisions of the Arbitration and Conciliation Act apply to arbitration under the National Highways Act, subject to the latter Act. It noted that the National Highways Act contains no provision excluding the time limit prescribed under Section 33.
Accordingly, the High Court held that NHAI's Section 34 petition was time barred and dismissed the appeal.
For Appellants: Advocate Sruti Chaganti
For Respondents: Senior Advocate K.N. Phanindra, Advocate Krutika Raghavan