Is there any way ? Arduino can fire up a request to time server to pull the time.

There is an external chip "DS 1307" Real Time Clock module that can do this. I have one on order and am about to start using it as soon as it comes in.

If by "time server" you mean off the net, then you would need adittional networking hardware. If you mean an external time keeping device then what pcbolt recommended is a common one. There are also DS3232 time keeping IC's that don't require an external crystal like the DS1307. That is my chip of preference. You can see a writeup on it that I programmed Here.

To request a time server from the Arduino you would need a network shield connecting you to the network than to the time server (TCPIP).

You could also use the network shield with a Nerdkit ATmel 168 or 328 processor but you have to write the network driver for the 168.

Looks like there might be some work in that area here apparently Atmel is releasing a TCPIP stack for other processors. Google AVR TCPIP. Now this is cool it is using telnet to talk with a micro don't know about micro to PC or network.

Ralph