Insights
Arbitration case insight
December 13, 2022In this newsletter we analyse a recent development in an arbitration related case where The High Court of Delhi clarifies the limitation period applicable to a counterclaim vis-à-vis Sections 8 and 21 of the Arbitration and Conciliation Act, 1996.
In this case the Court’s decision makes it clear that a party must be diligent in making sure that arbitration is commenced and that its counterclaim is filed on time notwithstanding the pendency of an application under Section 8 of the Arbitration Act. It is also advisable that an application under Section 8 must contain material particulars of the proposed counterclaim, though this in itself would not entitle an applicant to claim exclusion under Section 14 of the Limitation Act. The Court further clarified the scope of Section 21 of the Arbitration Act to the extent that for a notice to commence arbitration, it must specifically seek to refer the ‘matter in issue’ to arbitration.
