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    Applicability of Limitation Act On Arbitration Proceedings

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    Anshuman Tiwari Saryuparin
    The document discusses the applicability of the Limitation Act, 1963 on arbitration proceedings in India. Section 43 of the Arbitration and Conciliation Act, 1996 states that limitation periods will apply to arbitration as they do for court cases. However, where the Arbitration Act specifies a limitation period for something, like the 3 month period to challenge an award under Section 34(3), that period will apply instead of the periods in the Limitation Act. The Arbitration Act is also silent on whether time spent pursuing a case in the wrong forum is excluded from limitation periods. The arbitrator decides issues around limitation periods and must apply the Limitation Act.

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    Applicability of Limitation Act On Arbitration Proceedings

    Uploaded by

    Anshuman Tiwari Saryuparin
    84 views2 pages
    The document discusses the applicability of the Limitation Act, 1963 on arbitration proceedings in India. Section 43 of the Arbitration and Conciliation Act, 1996 states that limitation periods will apply to arbitration as they do for court cases. However, where the Arbitration Act specifies a limitation period for something, like the 3 month period to challenge an award under Section 34(3), that period will apply instead of the periods in the Limitation Act. The Arbitration Act is also silent on whether time spent pursuing a case in the wrong forum is excluded from limitation periods. The arbitrator decides issues around limitation periods and must apply the Limitation Act.

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    Applicability of Limitation Act on Arbitration Proceedings

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    The document discusses the applicability of the Limitation Act, 1963 on arbitration proceedings in India. Section 43 of the Arbitration and Conciliation Act, 1996 states that limitation periods will apply to arbitration as they do for court cases. However, where the Arbitration Act specifies a limitation period for something, like the 3 month period to challenge an award under Section 34(3), that period will apply instead of the periods in the Limitation Act. The Arbitration Act is also silent on whether time spent pursuing a case in the wrong forum is excluded from limitation periods. The arbitrator decides issues around limitation periods and must apply the Limitation Act.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    84 views2 pages

    Applicability of Limitation Act On Arbitration Proceedings

    Uploaded by

    Anshuman Tiwari Saryuparin
    The document discusses the applicability of the Limitation Act, 1963 on arbitration proceedings in India. Section 43 of the Arbitration and Conciliation Act, 1996 states that limitation periods will apply to arbitration as they do for court cases. However, where the Arbitration Act specifies a limitation period for something, like the 3 month period to challenge an award under Section 34(3), that period will apply instead of the periods in the Limitation Act. The Arbitration Act is also silent on whether time spent pursuing a case in the wrong forum is excluded from limitation periods. The arbitrator decides issues around limitation periods and must apply the Limitation Act.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Applicability of Limitation Act, 1963 on Arbitration Proceedings

    INTRODUCTION: Section 43 of the Arbitration and Conciliation Act, 1996 (hereinafter


    referred to as Act, 1996) talks about the applicability of the Limitation on arbitration
    proceedings. Section 43(1) says that the limitation period shall be applicable to arbitration
    proceedings as it applies to Court proceedings.

    Section 43(2) says for purpose of limitation the arbitration is deemed to have commenced
    from that day as referred to in the Section 21 of the Act, 1996 (that is the day on which the
    reference of the dispute to arbitration is received by the Respondents).

    Section 43(3) says that in case, where an arbitration agreement provides that any claim to
    which the agreement applies shall be barred unless some steps are taken to initiate arbitration
    proceedings within the fixed time period as provided by the agreement, the Court may, even
    after expiration of time period, extend the term to such proper period as may be justified in
    the particular case.

    Section 43(4) says that in case were the Court has ordered for the setting aside of an Arbitral
    award then the period between the commencement of the Arbitration and the date of order of
    the Court shall be excluded for the purpose computing limitation period for commencement
    of proceedings with respect to the dispute so submitted.

    APPLICABILITY OF LIMITATIONS ACT, 1963: The limitations Act, 1963(hereinafter


    referred to as Act, 1963) is the general Law with regards to Limitation in India. Further on
    Section 29 (2) of the Act, 1963 states that the period of limitation shall apply for computation
    of time period prescribed by special law only till the extent it is not excluded expressly.

    Section 3 of the Act, 1963 enjoins the Court to consider the question of Limitation whether it
    is pleaded or not.1 Thus if an arbitration application is barred by limitation such application
    can be rejected by the Court. The law of limitation is however only applicable to the
    provisions of Part I of the Act, 1996 and not with respect to Part II which deals with Foreign
    Awards.

    Thus by virtue of Section 29(2) of the Act, 1963 when the various provisions of Act, 1996
    has already prescribed the respective time limit, then the time period prescribed under the

    1
    State of Orissa V. Damodar Das, AIR SC 942, 1996
    Act, 1996 will become applicable instead of time period as mentioned under the Limitations
    Act, 1963.

    For example, Section 34 (3) of the Act, 1996 talks about the period of limitation for moving
    an application to set aside an arbitral award (I.e. 3 months from the date of receipt of the
    arbitral award by the applicant). Proviso to Section 34 (3) provides the Court with the power
    to extend the period mentioned under Section 34 (3) for another 30 days if the Court is
    satisfied that there was sufficient cause that prevented the applicant from filling within the
    prescribed time period. Thus in this case the period of limitation applicable would be the one
    which has been mentioned under Section 34(3) and not the one mentioned under Limitation
    Act, 1963.

    However, the Act, 1996 is silent about the period of limitation in case where any party had
    bonafidely started and continued prosecution for its remedy before a forum which did not
    have jurisdiction in the first place. The Act, 1996 doesn’t mention whether such period of
    time spent in the prosecution before the inappropriate forum would be excluded or not.

    Further on it is the arbitrator who decides whether a particular claim is within the time limit
    or not 2 and that the arbitrator is bound to apply Limitations Act, 19633.

    CONCLUSION: Thus, by virtue of Section 43 the limitation period of 3 years (which is the
    period of limitation prescribed for raising claims arising out of contract as provided by the
    limitations Act) would be applicable for to arbitration proceedings as it applies to a civil suits
    in Court. However, when various provisions of the Arbitration and Conciliation Act, 1996
    already provide for a particular limitation period, the limitation period mentioned under the
    Limitations Act, 1963 will stand excluded because of Section 29(2) of the Limitations Act,
    1963.

    2
    Fertillizer Corporation of India V. Ravi Kumar Ohri, AIR 1979 Ori 19
    3
    Wazirchand Mahajna V. Union of India, 1967 AIR 990

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