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DELHI HIGH COURT: ISSUE OF LIMITATION IN SECTION 11 PETITION SHOULD BE DEFERRED TO ARBITRAL TRIBUNAL, COURT MAY ADDRESS ONLY IN SPECIFIC CIRCUMSTANCES | ARBITRATION ACT

The Business Guardian

|

May 13, 2024

The Delhi High. Court in the case M/S Kimaya Buildtech Llp Vs K. C. Software Pvt. Ltd & Ors. observed and has held that the court may address the issue of limitation during a petition under Section 11 of the Arbitration and Conciliation Act, 1996, but only under specific circumstances.

DELHI HIGH COURT: ISSUE OF LIMITATION IN SECTION 11 PETITION SHOULD BE DEFERRED TO ARBITRAL TRIBUNAL, COURT MAY ADDRESS ONLY IN SPECIFIC CIRCUMSTANCES | ARBITRATION ACT

The bench headed by Justice Prateek Jalan in the case held that this occurs when the limitation bar is clearly evident from the petition and accompanying documents.

The Court in the case held that the court's role is solely to establish the prima facie presence of an arbitration agreement.

Further, the court held that the final determination, which includes the limitation matters, is deferred to the arbitral tribunal, as agreed upon by the parties.

FACTS OF THE CASE:

The present matter pertains to an agreement which incorporated an arbitration clause, the clause 13 which stipulated that all disputes concerning the Agreement shall be resolved through arbitration in accordance with the provisions of the Arbitration and Conciliation Act, 1996, with New Delhi designated as the place of arbitration.

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