Arbitration and Conciliation Act, 1996
Section 3 of Arbitration Act: Receipt of Written Communications
Section 3 of the Arbitration and Conciliation Act, 1996 lays down when a written communication is treated as received for the purposes of Part I of the Act. It covers personal delivery, delivery at specified addresses, a fallback rule where an address cannot be found after reasonable inquiry, the date of deemed receipt, and an express exception for communications relating to proceedings before a judicial authority.
Section 3 - Receipt of Written Communications
(1) Unless otherwise agreed by the parties,-
(a) any written communication is deemed to have been received if it is delivered to the addressee personally or at his place of business, habitual residence or mailing address, and
(b) if none of the places referred to in clause (a) can be found after making a reasonable inquiry, a written communication is deemed to have been received if it is sent to the addressee's last known place of business, habitual residence or mailing address by registered letter or by any other means which provides a record of the attempt to deliver it.
(2) The communication is deemed to have been received on the day it is so delivered.
(3) This section does not apply to written communications in respect of proceedings of any judicial authority.
Meaning and Effect of Section 3
Section 3 creates statutory rules for determining receipt of written communications in arbitration matters governed by Part I of the Act. The provision begins with the words "Unless otherwise agreed by the parties", which means the parties may agree upon a different contractual method for service or receipt of communications.
Where there is no contrary agreement, a communication is treated as received when it is delivered personally to the addressee or delivered at the addressee's place of business, habitual residence or mailing address.
Reasonable Inquiry and the Last Known Address
If none of the ordinary addresses specified in Section 3(1)(a) can be located, Section 3(1)(b) provides a fallback rule. A reasonable inquiry must first be made. After that inquiry, the communication may be sent to the addressee's last known place of business, habitual residence or mailing address.
The method used must provide a record of the attempt to deliver. The statutory text expressly refers to a registered letter and also permits another means that provides such a record.
When Is the Communication Deemed to Be Received?
Under Section 3(2), the communication is deemed to have been received on the day on which it is delivered in accordance with Section 3.
Why Section 3 Matters in Arbitration
Arbitration frequently involves notices, procedural communications, statements, applications and other written documents. Section 3 provides a default framework for determining when such communications are treated as received, while still respecting any different service arrangement agreed by the parties.
The provision should be read with the arbitration agreement and the applicable provisions of the Arbitration and Conciliation Act, 1996. Where the communication concerns court or other judicial-authority proceedings, Section 3(3) must also be kept in view.
Official Source
The official text of the Arbitration and Conciliation Act, 1996 is available on India Code, maintained by the Government of India. The Act is Act No. 26 of 1996 and is administered by the Ministry of Law and Justice, Department of Legal Affairs.
View the Arbitration and Conciliation Act, 1996 on India Code