Suo Moto Extension Of Limitation By Supreme Court| The Balance Days Of Limitation Left On 15.03.2020 Would Become Available W.E.F. 01.03.2022: Delhi High Court
The High Court of Delhi has held that the balance days of limitation which were available to a party on 15.03.2020 would become available with effect from 01.03.2022, which is the day on which the benefit of the Suo Moto Extension by the Supreme Court expired. The bench of Justice Prathibha M. Singh held that a petition under Section 11(6) of the A&C Act would not be time barred...
The High Court of Delhi has held that the balance days of limitation which were available to a party on 15.03.2020 would become available with effect from 01.03.2022, which is the day on which the benefit of the Suo Moto Extension by the Supreme Court expired.
The bench of Justice Prathibha M. Singh held that a petition under Section 11(6) of the A&C Act would not be time barred when it is filed within the balance period of limitation calculated from 01.03.2022.
Facts
The parties entered into an agreement dated 16.09.2015. The agreement provided for resolution of disputes through arbitration.
A dispute arose between the parties in relation to an outstanding amount of Rs.12,36,134.58/- payable to the petitioner. Accordingly, the petitioner sent a demand notice dated 24.06.2020. Thereafter, the notice of arbitration was issued on 17.09.2020.
Upon the failure of the parties to mutually appoint an arbitrator, the petitioner filed the petition under Section 11(6) of the A&C Act.
Submissions of the Parties
The respondents objected to the maintainability of the petition on the following grounds:
- The claims are time barred since the petition is filed more than 3 years after the invocation of arbitration.
Analysis by the Court
The Court observed that the Supreme Court in Re: Cognizance for Extension of Limitation [Suo Moto Writ Petition (C) No. 3 of 2020 has excluded the period from 15.03.2020 till 28.02.2022 from the period of limitation. Moreover, the Apex Court in M/s Arif Azim Co. Ltd. v. M/s Aptech Ltd. (2024 INSC 155) has held that the balance period of limitation remaining on 15.03.2020 would be available with effect from 01.03.2022.
The Court held that that the balance days of limitation which were available to a party on 15.03.2020 would become available with effect from 01.03.2022, which is the day on which the benefit of the Suo Moto Extension by the Supreme Court expired.
The Court held that the claim/petition is not time barred if the balance period of limitation is added to the period of limitation to be calculated from 01.03.2022. Accordingly, the Court dismissed the objection to the maintainability.
Case Title: G4S Secure Solutions v. Matrix Cellular (International) Services Ltd
Citation: 2024 LiveLaw (Del) 431
Date: 02.04.2024
Counsel for the Petitioner: Mr. Vikrant Arora, Advocate
Counsel for the Respondent: Mr. Arkaj Kumar, Advocate
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