Limitation Act Not Applicable To Arbitration Proceedings Under National Highways Act: Kerala High Court
The Kerala High Court held that for arbitration proceedings other than under the Arbitration and Conciliation Act, the provisions of the Limitation Act would not apply unless expressly mentioned in the law under which the arbitration proceedings were inititaed. It was thus observed that the Limitation act would not apply to arbitration proceedings under the National Highways Act.
The respondent in the appeal had applied for Arbitration under the National Highway Act. The District Collector who is the arbiter under the NH Act rejected the arbitration request on 06/09/2012 on grounds of delay.
The respondent filed a writ petition before the High Court against the rejection and the High Court held that the delay could be condoned. The National Highway Authority of India challenged the decision of the High Court in this appeal. The Division Bench of Acting Chief Justice A. Muhamed Mustaque and Justice S. Manu considered whether provisions of the Limitation Act applied to arbitration proceedings under the National Highway Act.
As per Section 43 of the Arbitration and Conciliation Act, the Limitation Act is applicable to arbitration proceedings as well. However, Section 2(4) has exempted the application of Section 43 on arbitration proceedings under other enactments. The Court noted that there is no limitation prescribed under the National Highway Act. It held:
“It is clear from Section 2(4) of the Arbitration and Conciliation Act that Section 43 will not apply to every arbitration under any other enactment. This means that if no limitation is prescribed under any other enactment, provisions of the Limitation Act would not apply to such arbitration under such enactment.”
The Court further held that the writ petition filed under Article 226 of the Constitution is not maintainable. It relied on its own decision in National Highway Authority of India v Devassy C. M. and Others (WA No. 1364/ 2022) where it was held that a party can challenge the decision of the arbitration under the National Highway Act only under Section 34 of the Arbitration and Conciliation Act.
Hence, the appeal was allowed.
Counsel for the Appellant: Advocate A. Salil Narayanan
Counsel for the Respondent: Senior Government Pleader Adv. K. P. Harish
Case No: WA 1600 of 2022
Case Title: National Highway Authority of India v P. V. George and Others
Citation: 2024 LiveLaw (Ker) 490