Limitation Act Won’t Apply For Arbitration Under National Highway Act: Kerala High Court
|The Kerala High Court observed that the Limitation Act will not apply for arbitration under the National Highway Act, 1956.
Section 43 of the Arbitration & Conciliation Act, 1996 stipulated that the Limitation Act, 1963 shall apply to all arbitrations as it applies to proceedings in Court. However, the Court said that if no limitation is prescribed under any other enactment provisions of the Limitation Act would not apply to such arbitration under such enactment.
The Court was hearing a Writ Appeal preferred by the National Highway Authority after the Court allowed the Writ Petition of the Petitioner that challenged the decision of the District Collector.
The bench of Acting Chief Justice Muhamed Mustaque and Justice S. Manu perused Section 2(4) of the Arbitration and Conciliation Act, 1996 and observed, “Section 43 will not apply to every arbitration under any other enactment. This means that if no limitation is prescribed under any other enactment, provisions of the Limitation Act would not apply to such arbitration under such enactment. In the light of the above, we are of the view that the Limitation Act will not apply for arbitration under the National Highway Act.”
Advocate K.A. Salil Narayanan appeared for the Appellant and Senior Govt. Pleader K.P. Harish appeared for the Respondent.
Brief Facts-
The District Collector, acting as Arbitrator under the National Highway Authority, rejected an arbitration request due to delay. The petitioner filed a new arbitration request. The Court allowed the Writ Petition when Petitioner cited a judgment of the Court in W.P. (C)No.21796/2019 and ordered the District Collector to reconsider the arbitration request. However, the National Highway Authority approached the Court with the present Writ Appeal when it noted that a Division Bench had overturned the cited judgment.
The Court perused Section 3G (5) of the National Highway Act and observed, “There is no prescription of limitation under the National Highway Act.”
The Court said that the remedy to challenge the decision of the Arbitrator, who is the District Collector, is by invoking the provisions under Section 34 of the Arbitration and Conciliation Act.
Accordingly, the Court held that the Writ Petition is not maintainable and set aside the impugned judgment.
Finally, the Court allowed the Writ Appeal.
Cause Title: National Highways Authority of India v. P.V. George (Neutral Citation: 2024:KER:57091)