In an arbitration proceeding, mere absence of supporting affidavit under Section 65B of the Indian Evidence Act, 1872 will not render electronic document inadmissible or unreliable

In the matter of Megha Enterprises & Ors. Vs. M/s Haldiram Snacks Pvt. Ltd. In O.M.P.(COMM) No. 79/ 2021 decided on 15.04.2021 by the Delhi High Court.

Facts: Petition was filed under Section 34 of the Arbitration and Conciliation Act, 1996 before the Delhi High Court challenging the award of the sole arbitrator. The appellant (respondent before the arbitral tribunal) assailed the impugned award on the ground that the claim was barred by limitation and the finding in the award, to the contrary was illegal. The Respondent (Claimant before the arbitral tribunal) herein had relied on a letter of acknowledgment received from the official of the appellant via email to say that the limitation stood extended under Section 18 of the Limitation Act, 1963.
It was contended by the appellant the Arbitral Tribunal had erred in accepting that the said letter had been sent by electronic mode as there was no evidence to the aforesaid effect. He also submitted that the said letter could not be relied upon as the necessary affidavit of evidence under Section 65B of the Evidence Act, 1872 was not submitted.

Issue: Whether the purported letter of acknowledgment sent via email could be relied upon in the absence of a supporting affidavit under Section 65 B of the Indian Evidence Act,1872

Held: The Delhi High Court observed that the Arbitral Tribunal had examined the question of limitation in some detail. It had first of all accepted, on evaluation of evidence led before it that the email along with which the acknowledgment letter was appended had been sent by and from the email id of an employee of the appellant to the representative of the Respondent. The purported letter of acknowledgement, which was stated to be attached along with said email, clearly confirmed that a sum of ₹19,03,77,000/- was outstanding in the ledger accounts of the appellant. Therefore, the Court accepted the reasoning of the arbitral tribunal based on evidence on record.
The Court rejected the contention that the Arbitral Tribunal had grossly erred in accepting the said evidence without an affidavit under Section 65B of the Indian Evidence Act, 1872 for the reason that in terms of Section 1 of the Indian Evidence Act 1872, the said Act is not applicable to proceedings before the arbitrator.