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VIBHU BAKHRU
Indian Oil Corporation Ltd – Appellant
Versus
Great Eastern Shipping Co Ltd & Anr – Respondent
JUDGMENT
Vibhu Bakhru, J. - Indian Oil Corporation Ltd. (hereafter 'IOCL') is a Public Sector Undertaking engaged in the business of import, distribution and sale of petroleum and other ancillary products. It has filed the present petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereafter the 'A&C Act') impugning an Arbitral Award dated 16.04.2012 (hereafter 'the impugned award') made by an Arbitral Tribunal comprising of three members. The Arbitration was conducted under the aegis of the Indian Council of Arbitration (Respondent No. 2) and in accordance with the Maritime Arbitration Rules of the Indian Council of Arbitration. By the impugned award, the Arbitral Tribunal had rejected IOCL's claim as barred by limitation.
2. Iocl contends that the impugned award is patently illegal, as the Arbitral Tribunal could not have denied the benefit of Section 14 of the Limitation Act, 1963 (hereafter the 'Limitation Act') to IOCL. IOCL claims that its claim was within the period of limitation as the period spent by it in pursuing its claim as a counter claim before another Arbitral Tribunal, ought to have been excluded in terms of Section 14 of the Limitation Act.
3. Re
The main legal point established in the judgment is that the applicability of Section 14 of the Limitation Act, 1963, and the due diligence of the claimant in pursuing its claims are crucial factors ....
The court affirmed that claims for breach of contract are subject to statutory limitation periods, which cannot be extended by claims of continuing breaches.
Time limitation for counter-claims must be computed from the date of cause of action, and notices under Section 21 must explicitly invoke arbitration to affect limitation.
The main legal point established in the judgment is the application of limitation principles under the Arbitration and Conciliation Act to determine the timeliness of the counter claim and the reject....
The main legal point established in the judgment is that parties cannot raise new defenses at a later stage and that interest awarded in excess of the claim made by a party is not valid.
The limitation period for claims in arbitration commences upon receipt of notice invoking arbitration, not from the breach date, and claims cannot be barred if defenses were not properly raised.
The limitation period for arbitration claims commences from the date of the Cure Notice, and claims not filed within three years are barred, affirming the arbitrator's findings.
The court ruled that arbitration findings are minimally subject to judicial review, confirming compensation awarded for unlawful possession and possession restoration based on the terms of the compro....
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