Time Spent On Application Under Section 8 Of A&C Act, Not Excludable For Computation Of Limitation For Counter Claim: Delhi High Court
Live LawThe Delhi High Court has ruled that in a suit filed by a party, the time spent by the opposite party in pursuing its application under Section 8 of the Arbitration and Conciliation Act, 1996, cannot be excluded for the purpose of computation of the limitation period for filing the counter-claims by the opposite party before the Arbitral Tribunal. Section 14 of the Limitation Act, provides for exclusion of the time spent by an applicant in prosecuting another civil proceeding against the same party for the same relief, in a court which is unable to entertain it due to defect of jurisdiction or other cause of a like nature While holding that the counter-claim is in the nature of an original action and that it is not an application as contemplated under Section 14 of the Limitation Act, the High Court ruled that the benefit of Section 14 of the Limitation Act was not available to the respondent. Once it is found that pursuing an application under Section 8 of the A&C Act does not amount to pursuing civil proceedings involving the same matter in issue as an arbitral claim, the respondent would not be entitled to any benefit under Section 14 of the Limitation Act", the Court said. Rejecting the contention raised by the respondent that the period of limitation for filing the counter-claim would stop running on the date when the respondent had filed an application under Section 8 of the A&C Act, the Court held that the period of limitation for filing a counter-claim would stop running on the date when the counter-claim is filed, as provided under Section 3 of the Limitation Act.