In Shakti Bhog Food Industries Ltd. v. The Central Bank of India and Anr.[1], the Hon’ble Supreme Court has clarified as to when the three-year limitation period contemplated under Article 113[2] of the Limitation Act, 1963 (Act), commences. It has also reiterated the importance of considering the averments made in a plaint as a whole while determining an application for rejection of plaints under Order VII Rule 11[3] of the Code of Civil Procedure, 1908 (CPC).


Continue Reading When does the clock of limitation start ticking for suits falling under Article 113 of the Limitation Act?

How did a virus extend limitation?

 Introduction

The ongoing COVID-19 pandemic has forced unprecedented measures on the movement of people across the country, thereby also bringing the functioning of courts and tribunals to a grinding halt. Considering the present scenario, where courts have become physically inaccessible, the Supreme Court of India (“Supreme Court”) on March 23, 2020 took suo-moto cognizance of a petition for extension of limitation and passed an order (“Order”)[1] extending the limitation prescribed either under general law or special laws, whether condonable or not, for filing any petitions, applications, suits, appeals and all other proceedings in all courts and tribunals from March 15, 2020, until passing of further orders.

The Supreme Court reasoned that the Order was being passed to “obviate such difficulties and to ensure that lawyers/litigants do not have to come physically to file such proceedings in respective Courts/Tribunals across the country”.
Continue Reading How did a virus extend limitation?

Exclusion of Time Spent in Pre-arbitration Negotiations

Complex commercial transactions and arrangements often contemplate a requirement to engage in good faith negotiations/discussions or mediation in order to resolve the dispute amicably before the parties can resort to arbitration[1]. It is also common in these arrangements that the parties are required to spell out their claim in writing and provide the other party with an opportunity to respond before good faith negotiations can commence. Given the complex nature of arrangements, stakes involved and multitude of relationships between the parties, often a considerable amount of time is spent in exploring ways to amicably resolve matters instead of “washing dirty linen in public”. It has been a matter of considerable debate whether the time spent in good faith negotiations/discussions/mediation can be excluded for the purpose of computing the period of limitation for reference to arbitration.

The recent Supreme Court judgement in the case of Geo Miller & Co. Pvt. Ltd. v. Rajasthan Vidyut Utpadan Nigam Ltd.[2] (Geo Miller Case) has explained the legal position on this aspect and paved the way for making a carve out for time spent in exhausting pre-arbitration procedures for the purpose of computing the period of limitation for reference to arbitration.
Continue Reading Exclusion of Time Spent in Pre-arbitration Negotiations/Settlement Discussions: A Much Needed Carve Out