Jurisdiction(s):
United Kingdom

Supreme Court of India: three-year limit to seek appointment of arbitrator runs from refusal or failure to appoint; Section 11 limitation distinct from claim accrual

Published on: 09 July 2024

Published by a LexisNexis Arbitration expert

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Article summary

M/s Arif Azim Co Ltd v M/s Aptech Ltd [Arbitration Petition No. 29 of 2023] What are the practical implications of this case?

This ruling delivers several important, real-world consequences for arbitration practice:

The SC confirmed that the Limitation Act, 1963 applies across arbitral matters, including requests to appoint arbitrators under Section 11(6) of the A&C Act. It further noted the need for a legislative amendment to fix a bespoke limitation period for Section 11(6) applications, observing that the currently applicable three-year period—arising from a gap in the A&C Act—is unduly long and undermines the Act’s objective of resolving commercial disputes promptly and within strict timelines
The SC also highlighted the clear separation between the time limit for submitting a Section 11(6) application under the A&C Act and the limitation period for commencing arbitration itself (i.e. serving a notice invoking arbitration) in relation to the underlying claims

These clarifications guide parties on timelines at both the appointment stage and when triggering arbitration on the merits, reinforcing procedural discipline in line with the A&C Act’s emphasis on speed and efficiency...

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