Advocate Sushila
SUPREME COURT UPHOLDS APPLICABILITY OF LIMITATION ACT 1963 TO ARBITRATION PROCEEDINGS

SUPREME COURT UPHOLDS APPLICABILITY OF LIMITATION ACT 1963 TO ARBITRATION PROCEEDINGS

The #SupremeCourt has in a recent case of M/s. Silpi Industries etc. vs Kerala State Road Transport Corporation & Anr. etc. passed a #Judgment dated 29-06-2021 and decided upon various issues including the issue on whether #Limitation Act, 1963 is applicable to the proceedings under the Arbitration and Conciliation Act 1996 (#Arbitration Act) arising out of Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act).


In this case, Kerala State Road Transport Corporation, the Respondent No. 1 herein, invited tenders for supply of thread rubber for tyre rebuilding. M/s Silpi Industries, the Appellant herein, was given the purchase orders, according to which, 90% of the purchase price was to be given to the Appellant on supply of materials and balance 10% subject to final performance report. However, when the balance 10% was not paid to the Appellant-Supplier, they approached the Industrial Facilitation Council [previously constituted under the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 (for short, ‘IDPASC Act’)], which is presently the Micro and Small Enterprises Facilitation Council (Council) constituted under the MSMED Act. The Councils have been set up under Section 20 of the MSMED Act for settlement of disputes between MSME buyers and suppliers and conciliation under Section 18 of the MSMED Act. In case the settlement/conciliation fails before the Council, the matter can be referred to arbitration and the provisions of Arbitration Act would apply to such dispute as if the arbitration was in pursuance of an arbitration agreement.


To read more, please visit the link below:


https://theindianlawyer.in/supreme-court-upholds-applicability-of-limitation-act-1963-to-arbitration-proceedings/


#arbitration #limitation #supremecourt

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