Limitation periods for filing various applications and petitions with regard to the Indian Arbitration and Conciliation Act, 1996

NDA TUBE

In this video, Adimesh Lochan and Ansh Desai, members of the Dispute Resolution team, discuss the various time limits and limitation periods for approaching the Courts with respect to various provisions of the Indian Arbitration & Conciliation Act, 1996, like Section 11 (appointment of an arbitral tribunal), Section 34 (applying for setting aside of an award), etc.

Transcript

00:00Hello everyone, I am Ansh and this is Adimesh, we are members of the dispute resolution team

00:28of Nishad Desai Associates and in this video we will be discussing various timelines and

00:32limitation periods for filing various petitions and applications under Indian law with reference

00:38to the Indian Arbitration and Conciliation Act of 1996.

00:42So Adimesh, tell me when disputes first arise between parties and when they want to seek

00:48an appointment of an arbitrator or an arbitral tribunal, they have to approach the court

00:54under section 11 of the Arbitration and Conciliation Act.

00:57What is the time period in which they should do so?

00:59Yes Ansh, so the timeline for filing a section 11 is although not prescribed in the Arbitration

01:05and Conciliation Act but we have had a series of judgments from the Supreme Court which

01:10have discussed the timeline for filing an application under section 11.

01:13Now the section 11 prescribes or these judgments rather prescribe a timeline for 3 years for

01:20filing an application under section 11.

01:22Now the question arises when does this timeline of 3 years begin?

01:26The judgments have said that the timeline begins on the date on which the right to sue

01:31accrues.

01:32Now we have another judgment of the Supreme Court which has now recently explained the

01:37phrase as to what the right to sue accrues means or when is the right to sue accruing.

01:44This phrase has now been explained to mean the date of commencement of arbitration and

01:49as we know the Arbitration Act provides for a stage of commencement of arbitration which

01:54is nothing but the issuance of the notice of arbitration.

01:57So effectively the timeline for filing an application for seeking appointment of an

02:02arbitrator under section 11 is 3 years from the notice of arbitration.

02:07Understood.

02:08So in what period should parties apply to set aside an arbitral award?

02:12I understand section 34 of the Arbitration Act deals with this.

02:16Correct.

02:17So as opposed to section 11, section 34 does provide a timeline for filing an application

02:22for setting aside the award.

02:24The timeline provided in this regard is 90 days from the date on which the award is received

02:30by the party.

02:31The section also provides for an extension of 30 days if the party is able to prove that

02:37the party was unable to or circumstances existed which prevented the party from filing a section

02:4334 within that period of 90 days.

02:47Now the extension is 30 days.

02:49So effectively the cumulative period for filing a section 34 is 90 plus 30 or 120 days.

02:56Got it.

02:57So now let's talk about section 37 of the Arbitration Act.

03:01Section 37 deals with filing of an appeal in relation to certain orders related to the

03:05arbitration proceedings.

03:07What are the timelines associated with that?

03:09Okay.

03:10So section 37 provides for filing an appeal.

03:14Now these appeals can be in cases which are a commercial dispute or in cases which are

03:21not a commercial dispute.

03:23Now under the Commercial Courts Act, the definition of commercial matters or commercial suits

03:28is said to be matters which are above the specified value of 3 lakhs.

03:33So for these matters which are commercial matters, the timeline provided for an appeal

03:37under 37 is 60 days from the date of the order under challenge.

03:43Understood.

03:44So now let's move on to part 2 of the Arbitration and Conciliation Act.

03:48What are the timelines associated with enforcement of a foreign award under section 47 and is

03:54there a distinction between the timelines associated with enforcement of a domestic

03:58award and an enforcement of a foreign award?

04:01So definitely there is a distinction between the timeline for enforcing a domestic award

04:05and enforcing a foreign award.

04:07Now the scheme that is provided in the Arbitration Act for enforcement of a foreign award is

04:13that the foreign award must undergo a stage of recognition and enforcement before the

04:18foreign award is actually executed.

04:22As opposed to a domestic award which is understood and actually defined to mean a court decree

04:28under the Arbitration and Conciliation Act.

04:30Now because the domestic award is considered to be a court decree already under the Arbitration

04:36and Conciliation Act, therefore the timeline for executing a domestic award is 12 years

04:42as per the Limitation Act and which is akin to any other court decree under the CPC.

04:47Now when we come back to talk about the foreign award, because the foreign award needs to

04:51undergo that process of recognition and enforcement, the timeline for filing this petition for

04:56recognition and enforcement is 3 years as has been decided by a series of judgments

05:01including the landmark judgment of the Supreme Court in Vedanta International.

05:05Thank you Adhimesh that this was really helpful.

05:07We hope this provides much needed clarity on filing various petitions and applications

05:12in relation to the Indian Arbitration and Conciliation Act of 1996.

05:16We hope you find this useful.

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