LL.B.

III Term
Paper LB - 302 - Limitation and Arbitration Part - A : Limitation
Prescribed Legislation: The Limitation Act, 1963 Prescribed Books: 1. 2. M.R. Mallick, B.B. Mitra The Limitation Act,, 1963 (21st ed., 2005) K. Shanmukham, Sanjiva Rows The Limitation Act (9th ed., 2000) Topic 1 : Limitation of Suits, Appeals and Applications (Sections 3-11) (a) Effect of expiry of limitation dismissal of suit, appeal, application (section 3) 1. 2. 3. R.B. Policies At Lloyds v. Butler (1949) 2 All ER 226 P.K. Kutty Anuja Raja v. State of Kerala, AIR 1996 SC 2212 Punjab National Bank v. Surendra Prasad Sinha, AIR 1992 SC 1815 Collector, Land Acquisition, Anantnag v. Katiji, AIR 1987 SC 1353 Ramlal v. Rewa Coalfields Ltd., AIR 1962 SC 361 State of Nagaland v. Lipok AO (2005) 3 SCC 752 1 3 5

(b) Extension of limitation (section 5) 4. 5. 6. 8 10 16

(c) Reckoning of limitation in case of legal disability minors, insane persons, idiots (sections 6-8) 7. 8. Kolandevel Gounder v. Chinnappan, AIR 1965 Mad. 541 Darshan Singh v. Gurdev Singh, AIR 1995 SC 75 Topic 2: Computation of Limitation (Sections 12-24) (a) 9. 10. 11. Exclusion of time (sections 12-13) The Commissioner of Sales Tax, U.P. v. M/s. Madan Lal Das & Sons, Bareilly, AIR 1977 SC 523 State of Uttar Pradesh v. Maharaj Narain, AIR 1968 SC 960 Udayan Chinubhai v. R.C. Bali, AIR 1977 SC 2319 25 29 32 22

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12. India House v. Kishan N. Lalwani (2003) 9 SCC 393 39

(b) Exclusion of time for proceeding bonafide in a court without jurisdiction (Section 14) 13. 14. Deena (Dead) Through LRS. v. Bharat Singh (Dead)Through LRS., AIR 2002 SC 2768 Rameshwarlal v. Municipal Council, Tonk (1996) 6 SCC 100 43 48

(c) Exclusion of time in miscellaneous cases, e.g. stay/injunction order, requirement of notice or previous consent, etc. (sections 15-16) (d) Effect of fraud or mistake (section 17), Effect of acknowledgment (section 18), effect of payment (section 19), Effect of substituting or adding new plaintiff or defendant (section 21) 15. 16. 17. 18. 19. 20. 21. 22. Mahabir Kishore v. State of M.P., AIR 1990 SC 313 State of Kerala v. T. M. Chacko (2000) 9 SCC 722 Tilak Ram v. Nathu, AIR 1967 SC 935 Sampuran Singh v. Niranjan Kaur (Smt.), AIR 1999 SC 1047 Karuppaswamy v. C. Ramamurthy, AIR 1993 SC 2324 Topic 3 : Acquisition of Ownership by Possession (Sections 25-27) Rajender Singh v. Santa Singh, AIR 1973 SC 2537 Topic 4 : Saving of Other Laws (Section 29) Shantilal M. Bhayani v. Shanti Bai, 1995 Supp (4) SCC 578 Mukri Gopalan v. Cheppilat Puthanpurayil Aboobacker, AIR 1995 SC 2272 Topic 5 : The Schedule Period of Limitation (a) Article 54 Limitation for specific performance of contract 23. Venkappa Gurappa Hosur v. Kasawwa, AIR 1997 SC 2630 91 81 82 49 55 59 65 70 74

(b) Article 113 Any suit for which no period of limitation is provided elsewhere. 24. State of Punjab v. Gurdev Singh (1991) 4 SCC 1 92 (c) Article 136 For execution of any decree (other than decree granting a mandatory injunction) or order of any Civil Court. (d) Article 137 Limitation where no period is prescribed 25. Ajaib Singh v. Sirhind Cooperative Marketing-cum-Processing Service Society Ltd., AIR 1999 SC 1351 96

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Part - B : Arbitration and Conciliation

Prescribed Legislation: The Arbitration and Conciliation Act, 1996 Prescribed Books: 1. 2. 3. O.P. Malhotra and Indu Malhotra, The Law and Practice of Arbitration and Conciliation (2nd ed., 2006) N.D. Basu, Law of Arbitration and Conciliation (2001) Prafulla C. Pant, The Arbitration and Conciliation Act, 1996 (6th ed., 2001)

Recommended Books: 1. 2. David St. John Sutton, John Kendall and Judith Gill, Russell on Arbitration (21st ed., 1997) H.C. Johari, Commentary on Arbitration and Conciliation Act, 1996 (2nd ed., 2002)

Topic 1 : Importance of Arbitration and Conciliation General Provisions (sections 2-6) - Definitions, waiver of right of object, extent of judicial intervention in arbitration matters Arbitration Agreement (sections 7-9) - power to refer parties to arbitration where there is an arbitration agreement; interim measures, etc. by court: 26. 27. 28. 29. 30. K.K. Modi v. K..N. Modi (1998) 3 SCC 573 Bhatia International v. Bulk Trading S.A., AIR 2002 SC 1432 Sukanya Holdings Pvt. Ltd. v. Jayesh H. Pandya, JT 2003 (4) SC 58 P. Anand Gajapathi Raju v. P. V. G. Raju (Dead) AIR 2000 SC 1886 Haryana Telecom Ltd. v. Sterlite Industries (India) Ltd., AIR 1999 SC 2354 101 111 119 123 125

Topic 2 : Composition of Arbitral Tribunal (sections 10-15) - Number of arbitrators, Appointment of arbitrators, Grounds for challenge, challenge procedure, failure or impossibility to act, and termination of mandate and substitution of arbitrator

31. 32. 33. 34.

M.M.T.C. Limited v. Sterlite Industries (India) Ltd., (1996) 6 SCC 716 Narayan Prasad Lohia v. Nikunj Kumar Lohia, AIR 2002 SC 1139 Datar Switchgears Ltd. v. Tata Finance Ltd.,2000 (3) Arb. LR 44 (SC) SBP & Co. v. Patel Engg. Ltd.., 2005 (8) SCC 618

126 129 134 138

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35. 36. Citation Infowares Limited v. Equinox Corporation, 2009(6) SCALE 430 Bhatia International v. Bulk Trading S.A., AIR 2002 SC 1432 161

Topic 3 : Jurisdiction of Arbitral Tribunal (sections 16-17); Competence of arbitral Tribunal to rule on its jurisdiction and interim measures ordered by arbitral Tribunal Conduct of arbitral proceedings (sections 18-27); Making of arbitral award and termination of proceedings (sections 28-33) Topic 4: Recourse against Arbitral award; and validity of Arbitral ward (section 34); Finality and enforcement of arbitral awards (sections 35-36); Appeals (section 37) 37. 38. 39. 40. 41. Krishna Bhagya Jala Nigam Ltd. v. G. Arischandra Reddy (2007) 2 SCC 720 Union of India v. Popular Construction Co (2001) 8 SCC 470 . Union of India v. G.S. Atwal & Co., AIR 1996 SC 2965 New India Civil Erectors (P) Ltd.. v. ONGC, (1997) 11 SCC 75 Oil & Natural Gas Corporation Ltd. v. SawPipes Ltd., 2003 (4) SCALE 92

168 172 176 181 185

Topic 5: International Commercial Arbitration (a) Foreign Awards under New York convention (section 44) and Geneva Convention (section 53) (b) Foreign Awards when binding and when enforcement may be refused (section 46, 48, 55 and 57) and their enforcement (sections 49 and 58) 42. 43. Bhatia International v. Bulk Trading SA, AIR 2002 SC 1432 Haresh Dayaram Thakur v. State of Maharashtra, AIR 2000 SC 2281

Topic 6: Conciliation (section 61-81) 189

IMPORTANT NOTE: 1. The topics and cases given above are not exhaustive. The teachers teaching the course shall be at liberty to add new topics/cases. 2. The students are required to study the legislations as amended up-to-date and consult the latest editions of books. 3. The question paper shall include one compulsory question and a student has further to select at least one question each from Part I and Part II. The sample of question papers set for the examinations held during 2007-08 and 2008-09 are printed below for the guidance of the students.

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LL.B. III Term Examinations, December, 2007 Note: 1 Attempt five questions including Question No. 1 which is compulsory and select at least one question each from Part I and Part II. All questions carry equal marks.

Attempt briefly any four of the following: (a) Policy and scope of Law of Limitation. (b) Distinguish between Sections 18 and 19 of the Limitation Act, 1963. (c) Discuss the provisions relating to challenge to the appointment of Arbitrators and termination of their mandate. (d) Limitation only bars the remedy, but does not destroy the right. (e) Acknowledgement of Liability. PART I

2. (a) The expression Sufficient Cause employed by the legislature is adequately elastic to enable the courts to apply the law in a meaningful manner which sub-serves the ends of justice. What are the principles which are considered as the foundation of such a liberal approach? Discuss Giving reasons. (b) A judgement was pronounced by the court on 6-1-07 in favour of A and against X with a direction to A to make up the deficiency in the court fee upto 13-1-07. A deposited the court fee and the decree was drawn up on 13-1-07. Would X get the exclusion of time for obtaining the certified copy of the decree with effect from 13-1-07? Discuss with case law. 3. (a) Discuss the effect of Legal disability of the party entitled to sue, on the bar of limitation in the light of relevant provisions of the Limitation Act, 1963. (b) Explain the words time requisite in section 12(2) of the Limitation Act in the light of State of U.P. v. Maharaj Narain, AIR 1968 S.C. 960. 4. (a) X filed a suit against Y on 2-1-2001 for possession of agricultural land, in a Civil Court within the period of limitation of the three years. On 1-1-2005 the court dismissed the suit on the ground that land being revenue land, the Civil Court had no jurisdiction and the relief should be sought from the Revenue Court. X filed another suit in the Revenue Court within five days after the dismissal. Y raised an objection that the suit was time barred after the expiry of three years from the date of cause of action. Will Y succeed? Discuss the stand of Y. (b) Discuss the bar placed by S. 8 of the Limitation Act, on the operation of Ss. 6 and 7. PART II 5. (a) What are the essential ingredients of an Arbitration agreement? Discuss with case law. (b) As per Section 10 of the Arbitration and Conciliation Act, 1996, the number of arbitrators must not be even. What will happen to the award given by four arbitrators agreed to by the parties and where the parties also joined the proceedings till the announcement of the

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award, if one party challenges the composition/appointment of the Arbitral Tribunal in view of Section 11 and 10? Discuss with relevant case law. 6. (a) Explain the grounds on which an application for selling aside an award can be made. Can the court take suo motu action against the arbitral award u/s 35? (b) Explain the provisions of Conciliation in the Arbitration and Conciliation Act, 1996. Is the conciliator bound to pass on the information to the opposing parties, received by him, during the conciliation proceedings? 7. (a) Define International Commercial Arbitration. Discuss the provisions of Arbitration and Conciliation Act, 1996 with regard to Bhatia International v. Bulk Trading SA, AIR 2002 SC 1432. (b) Discuss the grounds and procedure to challenge the appointment of an Arbitral as provided in the Act. 8. (a) State and explain the provisions made in the Arbitration and Conciliation Act for the Appointment of Arbitrators. (b) Discuss the competence of an arbitral tribunal to rule on its own jurisdiction. Also mention the conditions when the mandate of an arbitration terminates. LL.B. III Term (Supplementary) Examinations, May-June, 2008 Note: 1 Attempt five questions including Question No. 1 which is compulsory and select at least one question each from Part I and Part II. All questions carry equal marks.

Attempt briefly any four of the following: (a) Long dormant claims have often more cruelty than of justice in them. Explain. (b) The Rules of Limitation are not meant to destroy the rights of the parties. Comment. (c) Do you agree that the person who willfully leaves the preparation and presentation of his appeal to the last day of period of limitation is guilty of negligence and is therefore not entitled to an extension of time if some unforeseen contingency prevents him for filing the appeal within time? (d) What are the attributes which must be present for an agreement to be considered as an arbitration agreement? (e) Can the question regarding winding up of the company be referred to an Arbitrator? PART I

2. What is the attitude of Courts in dealing with matters relating to condonation of delay in admitting appeals and applications? 3. (a) What are the types of legal disabilities covered under the Law of Limitation? What are the conditions precedent to limitation being extended on account of disability?

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X borrows Rs. 50,000 on the basis of pronote in January, 1990 from a firm of which A, B and C are partners. A is minor and B is insane. In 1995, A attains his majority and B regains his sanity and then within a year A, B and C file a suit against X for recovery of the debt. Is the suit maintainable? 4. (a) What is the true scope of the expression time requisite for obtaining a copy of the decree, sentence or order appealed from found in sub section 2 of section 12 of the Limitation Act, 1963? (b) In case of the judgment which is unconditioned by the requirement of any action by a party, the date of judgment will necessarily be the date of the decree Comment. PART II 5. When the subject matter of the suit includes subject matter of the arbitration agreement as well as other disputes, can the matter be referred to arbitration? 6. The arbitration agreement between the parties provides for appointment of two Arbitrators while Section 10 (1) of the Arbitration and Conciliation Act, 1996 does not envisage the appointment of an even number of Arbitrators. Can the arbitration agreement be given effect to and two Arbitrators be appointed? 7. Explain and answer the following in the light of the judgment of Supreme Court in the case of SBP & Co. v. Patel Engineering Ltd. (a) The power exercised by Chief Justice is a judicial power and not an administrative power. (b) Does Section 11(6) postulate delegation of power? (c) Finality attached to the decision of the Chief Justice under Section 11 (4) and (6) of the Act. (d) In case of appointment of Arbitrators or Arbitral Tribunal already made, the same are to be treated as valid and all objections to be decided under Section 16 of the Act. 8. What is the ambit and scope of Courts Jurisdiction in case where Award passed by the Arbitral Tribunal is challenged under Section 34 of the Arbitration and Conciliation Act, 1996? (b)

LL.B. III Term Examinations, December, 2008 Note: Answer five question including Question No. 1 which is compulsory. All questions carry equal marks. 1. Attempt briefly any four of the following (a) Law of Limitation bars the remedy and not the right. Comment. (b) Explain Time requisite in S.12 Limitation Act, 1963. (c) Effect of mistake on Limitation (d) Appointment of Arbitrator (e) Define International commercial Arbitration

viii Part I 2. The law of limitation is no doubt, the same for a private citizen as for governmental authorities. It would (however) be unfair to put government and private parties on same footing in all respect. Explain the above statement with respect to condonation of delay on sufficient cause under S.5 Limitation Act, 1963. 3. (a) F, Father of X and Y, alienated certain joint family property. X was major on the date of alienation while Y was a minor. Xs Claim to set aside alienation became barred by limitation when he did not file suit within 12 years of the cause or action. Can X later take benefit of the coming of the majority of Y and file a suit with him? (b) X incurs a debt of Rs. 80,000 in the year 2000 from a firm of which A, B and C are partners. A becomes insane while B is a minor admitted regains sanity in 2003 and B becomes major in 2004 for recovery of debt. Is the suit maintainable? Decide giving reasons. 4. L and M are friends who started a business but it soon ran into losses. L took over the entire business on 1-5-2001. He borrowed a sum of Rs. 3 lacs from M on the same date and executed a promissory note. Later, L made two payments to M on 16-5-2002 and 21-2-2003. M filed a suit for recovery of balance amount against L on 20-1-2006. L files a written statement admitting the above two payments but prays to the court to dismiss the suit as it is time barred. Decide with relevant statutory provisions and case law. Part II 5. (a) Explain the essential ingredients of an arbitration agreement. (b) Decide whether the following facts constitute an arbitration agreement/clause: (i) Where the parties agree to be bound by the decision of even number of arbitrators. (ii) Where the parties agree on decision of Public Health Engineer as final, conclusive and binding in respect of all questions relating to meaning of specifications drawings, instruction etc. 6. (a) A and B entered into business contract which contains an arbitration clause. A dispute arose between them. X is appointed as arbitrator and the proceedings commerce during pendency of proceedings. A came to know that B is about to sell his entire property along with property which is subject matter of present

ix dispute. In order to restrain B from selling the property during arbitration proceedings, A filed an application for interim protection in the district court B filed an objection that A should file the application before arbitrator since arbitral proceedings are pending. Decide upon the contention of A and B. Discuss the power of arbitrator to rule on his own jurisdiction and to give nonreasoned award. The main attraction of conciliation is the confidentiality of proceedings. How is this confidentiality maintained during and after the proceedings? Explain with reference to Aribitration and Conciliation Act, 1996. Discuss the status and effect of a domestic award, a foreign award and a conciliation settlement. What are the grounds on which a challenge may be made to an arbitral award? Explain the conditions when the mandate of an arbitration terminates.
LL.B. III Term (Supplementary) Examinations, May-June, 2009 Note: Attempt five questions including Question No. 1 which is compulsory. All questions carry equal marks.

(b) 7. (a)

(b) 8. (a) (b)

1. Attempt briefly any four of the following: (a) Meaning of the expression within such period under Section 5 of the Limitation Act, 1963. (b) Limitation bars the remedy, not the right. Comment. (c) Effect of acknowledgement on time-barred debt. (d) Effect of even number of arbitrators on the validity of arbitration agreement. (e) Can the question regarding winding up of the company be referred to an arbitrator? PART I 2. (a) What are the guiding principles for condonation of delay under section 5 of the Limitation Act? (b) A decree was passed against a person and he applied for certified copy of the decree for filing appeal on 29-7-2007. He also applied for another certified copy on 23-8-2007, which he got on 30-8-2007. He got 23-12-2007 certified copy of degree for which he had applied on 29-7-2007. He filed appeal on basis of this copy. Appeal was within the period of limitation on basis of this copy. Respondent prayed for dismissal of appeal on the ground that it was time-barred. Decide. 3. (a) What is the effect on Selection 8 on Sections 6 and 7 of Limitation Act?

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(b) Do the provisions of Limitation Act apply in case a special law provides for a different period of Limitation? 4. (a) What is the effect of mistake of law on limitation? Support your answer with the help of decided cases. (b) Distinguish between Section 18 and Section 19 of the Limitation Act, 1963. does the acknowledgement under Section 19 have to be made prior to the expiry of prescribed period of Limitation? PART II 5. (a) What are the essentials of an arbitration agreement? Does the following covenant constitute an arbitration agreement: The decision of the superintending Engineer or his nominee would be final, conclusive and binding on all questions relating to the meaning of the specifications, designs and drawing. (b) The power exercised by the Chief Justice of the High Court or the Chief Justice of India under Section 11(6) of the Arbitration and Conciliation is a judicial power. Do you agree? 6. (a) What is the meaning of Foreign Award as given in Geneva Convention Awards? On what grounds can the court suo motu refuse to enforce the foreign award? (b) Discuss the law laid down in Bhatia International v. Bulk Trading S.A., AIR 2002 SC 1432 in regard to application for interim measures under Section 9 of the Arbitration and Conciliation Act when the place of arbitration is out of India. 7. (a) Court appointed Mr. A as a conciliator in a matter. He formulated a settlement agreement on the basis of proceedings before him and sent it in a sealed envelope to the court without getting signature of the parties on it and without disclosing its terms to the parties. Discuss the status and effect of such a settlement agreement. (b) Discuss the power of the arbitrator to rule on his own jurisdiction under Section 16 of Arbitration and Conciliation Act, 1996. 8. Write short notes on any two of the following: (a) Form and contents of arbitral award; (b) Recourse against arbitral award; (c) Power of judicial authority to refer parties to arbitration under Part I and Part II of Arbitration and Conciliation Act: (d) Conciliation proceedings from commencement to termination.

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LL.B. III Term

Limitation and Arbitration

Cases Selected and Edited by

Niraj Kumar Praveen Kumar Singh P.S. Vats

FACULTY OF LAW
UNIVERSITY OF DELHI, DELHI-110 007
July, 2009