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DELHI HIGH COURT
VIBHU BAKHRU, AMIT MAHAJAN
Web Overseas Limited – Appellant
Versus
Universal Industrial Plants Manufacturing Company Private Limited – Respondent
| Table of Content |
|---|
| 1. background of the appeal and interim award (Para 1 , 2 , 3) |
| 2. factual context of the contract (Para 5 , 6 , 7 , 8 , 9 , 10) |
| 3. debate on limitation periods (Para 18 , 19 , 24) |
| 4. significance of notices under section 21 (Para 67 , 70) |
| 5. final judgement and order (Para 71 , 72) |
JUDGMENT
Vibhu Bakhru, J. The appellant has filed the present appeal under Section 37(1)(c) of the Arbitration and Conciliation Act, 1996 (hereafter `the A&C Act') impugning an order dated 24.06.2020 (hereafter `the impugned order') rendered by the learned Commercial Court. By virtue of the impugned order, the learned Commercial Court rejected the appellant's application preferred under Section 34 of the A&C Act [being OMP (COMM) No. 20/2018 captioned Web Overseas Limited v. Universal Industrial Plants Manufacturing Company Pvt. Ltd.], impugning an interim award dated 01.10.2018 (hereafter `the impugned award') passed by the Arbitral Tribunal. In terms of the impugned award, the appellant's contention that the counter-claim preferred by the respondent was barred by limitation, was rejected.
2. The Arbitral Tribunal had accepted that the respondent had not issued any notice under Section 21 o
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 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 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 ....
Article 113 of the Limitation Act reads as Any suit for which no period of limitation is provided elsewhere in the Schedule, the period of limitation is three years and the time begins to run when th....
An application for arbitration is barred by limitation if filed beyond the three-year period stipulated, starting from the date the cause of action arose as determined by prior communications.
A party forfeits the right to apply under Section 8 of the Arbitration and Conciliation Act if it fails to file within the time allowed for submitting a written statement.
Applications under S.20 of the Arbitration Act are subject to the three-year limitation period set forth in Article 181 of the Limitation Act.
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....
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