Bombay HC – Section 11 – Fresh Arbitration & New Arbitrator – Section 43 Limitation – Share Purchase Agreement
Section 11 – Fresh Arbitrator for Fresh Arbitration Proceeding – Section 43 Limitation – Share Purchase Agreement
On 8.12.2007, there was share purchase agreement as amended by the Deed of Rectification dated 21.4.2008.
By the Arbitral Award dated 6.6.2013, the claim of the applicant was rejected.
The High Court had set-aside the findings of illegality and unenforceability recorded by the Arbitrator and the award. Section 37 petition of the respondents was dismissed and also SLP by the Supreme Court.
After the award was set-aside, the applicant made demand of Rs.59,43,99,314/-.
On 25.11.2025, the applicant issued section 21 arbitration notice and thereafter, filed section 11 petition.
HELD that the limitation for filing section 11 petition for fresh arbitrator in fresh arbitral proceedings is relevant at the stage of appointment and applying Article 137 (3-years limit) the application was within limitation as it was filed in three years from 25.11.2025 arbitration notice. However, the question of limitation in respect of arbitral claim is to be decided by the Arbitrator.
Judgment dated 9.3.2026 of the High Court of Bombay in Commercial Arbitration Application (L) No.5187 of 2026 (OS) of Edelweiss Financial Services Limited Vs. Percept Finserve Private Limited and another
2007-2008 Share Purchase Agreement
2009 First arbitration started.
2013 Arbitral Award rejected claim of the applicant
2019 Section 34 Court set-aside the Award
2023 Section 37 appeal was dismissed
2023 Supreme Court dismissed the SLP
25.11.2025 Fresh arbitration notice was given.
17) There are two periods of limitations contemplated for arbitration proceedings viz., (i) limitation in respect of the claims, which are sought to be referred to arbitration and (ii) the time limit within which Application under Section 11(6) of the Arbitration Act is required to be f iled. For the ease of reference, I treat the limitation in respect of the claims, which are sought to be referred to arbitration as ‘the first aspect of limitation’ and the time limit within which Application under Section 11(6) of the Arbitration Act is required to be filed as ‘the second aspect of limitation.
Under Section 43(4) of the Arbitration Act, fresh arbitration proceedings need to be commenced after setting aside of the Arbitral Award within the prescribed period of limitation applicable in respect of the claim by excluding the time spent in commencement of earlier arbitration (the date of issuance of earlier notice under Section 21) and the date of Order of the Court. This relates to period of limitation for adjudication of claims sought to be referred to arbitration.
