Arbitral Claim & Limitation – Powers of Section 34 Court
Judgment dated 6.5.2025 of the High Court of Bombay (OS) Commercial Arbitration Appeal (L) No.18048 of 2024 in Commercial Petition No.342 of 2020 of Seok-Am-Tech Co. Ltd (SATCO) Vs. Tema India Private Ltd
Arbitral Claim & Limitation – Powers of Section 34 Court
The dispute arose out of the amounts due and payable by Tema in respect of purchase orders for forgings supplied in 2009, as per the details of outstanding payment in respect of shipment Nos.2, 3 and 4 in respect of shipment Nos.2, 3 and 4. The legal notice was given on 5.9.2012.
During the exchange of correspondence, in 2014, Tema requested to provide for confirmation of outstanding balance as on 31.3.2013.
In 2017, the company petition filed in 2015, was referred to arbitration.
In this context, Tema raised the issue of limitation.
The Arbitral Award negatived the objection of limitation considering the events subsequent to 12.2.2013 and sections 14, 18 and 19 of the Limitation Act.
However, Section 34 Court upheld the objection of limitation on the ground that three years period of limitation expired on 12.2.2013 and there was no acknowledgement in writing before expiry of said period.
In pre-independence decision in the case of Des Raj-Hukam Chand vs. Lachhi Ram-Prabh Daya( ILR 1955 Mad 1278), the Division Bench of the Lahore High Court speaking through Bhide, J. observed that ‘it is well-settled, that the question whether a suit is within time must be decided primarily on the basis of the plaintiffs’ own pleadings and not on the basis on the defence set up’. These jurisprudential principles are required to be kept in mind by the Court in determination of an issue as to limitation.
