Arbitration and Conciliation Act Section 43 — Limitations

CHAPTER X — Miscellaneous

Civil

Summary

Sub-section (1) says that the Limitation Act, 1963, which sets time limits for filing cases in court, applies to arbitration proceedings in the same way it applies to court proceedings.

Sub-section (2) states that, for the purpose of this section and the Limitation Act, an arbitration is considered to have started on the date mentioned in section 21 of this Act.

Sub-section (3) deals with arbitration agreements that fix their own time limit for starting arbitration, and say that a claim will be barred if that step is not taken within that time. If a dispute arises and that fixed time has already expired, the Court may extend the time for such period as it thinks proper, if it believes that not doing so would cause undue hardship, and it may impose any terms that the justice of the case requires.

Sub-section (4) says that when a Court orders an arbitral award to be set aside, the time period from the start of the arbitration until the date of the Court's order is excluded when calculating the time limit under the Limitation Act for starting fresh proceedings, including arbitration, on the same dispute.

Official Text

(1) The Limitation Act, 1963 (36 of 1963), shall apply to arbitrations as it applies to proceedings in court.

(2) For the purposes of this section and the Limitation Act, 1963 (36 of 1963), an arbitration shall be deemed to have commenced on the date referred to in section 21.

(3) Where an arbitration agreement to submit future disputes to arbitration provides that any claim to which the agreement applies shall be barred unless some step to commence arbitral proceedings is taken within a time fixed by the agreement, and a dispute arises to which the agreement applies, the Court, if it is of opinion that in the circumstances of the case undue hardship would otherwise be caused, and notwithstanding that the time so fixed has expired, may on such terms, if any, as the justice of the case may require, extend the time for such period as it thinks proper.

(4) Where the Court orders that an arbitral award be set aside, the period between the commencement of the arbitration and the date of the order of the Court shall be excluded in computing the time prescribed by the Limitation Act, 1963 (36 of 1963), for the commencement of the proceedings (including arbitration) with respect to the dispute so submitted.