LL.B.

III Term
Paper – LB - 302 - Limitation and Arbitration

Part - A : Limitation
Prescribed Legislation: The Limitation Act, 1963
Prescribed Books:
1. M.R. Mallick, B.B. Mitra The Limitation Act,, 1963 (22nd ed., 2011)
2. K. Shanmukham, Sanjiva Row’s 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. R.B. Policies At Lloyd’s v. Butler (1949) 2 All ER 226 1
2. Union of India v. West Coast Paper Mills Ltd. 3
AIR 2004 SC 1596
3. Punjab National Bank v. Surendra Prasad Sinha,
AIR 1992 SC 1815 10
(b) Extension of limitation (section 5)
4. Collector, Land Acquisition, Anantnag v. Katiji,
AIR 1987 SC 1353 13
5. Ramlal v. Rewa Coalfields Ltd., AIR 1962 SC 361 15
6. State of Nagaland v. Lipok AO (2005) 3 SCC 752 21

(c) Reckoning of limitation in case of legal disability – minors, insane persons,

idiots (sections 6-8)
7. Kolandevel Gounder v. Chinnappan, AIR 1965 Mad. 541
8. Darshan Singh v. Gurdev Singh, AIR 1995 SC 75 27

Topic 2: Computation of Limitation (Sections 12-24)

(a) Exclusion of time (sections 12-13)
9. The Commissioner of Sales Tax, U.P. v. M/s. Madan Lal Das
& Sons, Bareilly, AIR 1977 SC 523 30
10. State of Uttar Pradesh v. Maharaj Narain, AIR 1968 SC 960 34
 11. Udayan Chinubhai v. R.C. Bali, AIR 1977 SC 2319 37
12. India House v. Kishan N. Lalwani (2003) 9 SCC 393 44

(b) Exclusion of time for proceeding bonafide in a court without jurisdiction

(Section 14)
13. Deena (Dead) Through LRS. v. Bharat Singh (Dead)Through LRS.,
AIR 2002 SC 2768 48
14. Rameshwarlal v. Municipal Council, Tonk (1996) 6 SCC 100 53

(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. Mahabir Kishore v. State of M.P., AIR 1990 SC 313 54
16. State of Kerala v. T. M. Chacko (2000) 9 SCC 722 60
17. Tilak Ram v. Nathu, AIR 1967 SC 935 64
18. Sampuran Singh v. Niranjan Kaur (Smt.), AIR 1999 SC 1047 70
19. Karuppaswamy v. C. Ramamurthy, AIR 1993 SC 2324 75
Topic 3 : Acquisition of Ownership by Possession (Sections 25-27)
20. Rajender Singh v. Santa Singh, AIR 1973 SC 2537 79
Topic 4 : Saving of Other Laws (Section 29)
21. Shantilal M. Bhayani v. Shanti Bai, 1995 Supp (4) SCC 578 86
22. Mukri Gopalan v. Cheppilat Puthanpurayil Aboobacker,
AIR 1995 SC 2272 87
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 96
(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 97
(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 101
 Part - B : Arbitration and Conciliation

Prescribed Legislation: The Arbitration and Conciliation Act, 1996

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

Recommended Books:
1. David St. John Sutton, John Kendall and Judith Gill, Russell on Arbitration
(21st ed., 1997)
2. 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. K.K. Modi v. K..N. Modi (1998) 3 SCC 573 106

27. Bhatia International v. Bulk Trading S.A., AIR 2002 SC 1432 116
28. Sukanya Holdings Pvt. Ltd. v. Jayesh H. Pandya, JT 2003 (4) SC 58 124
29. P. Anand Gajapathi Raju v. P. V. G. Raju (Dead)
AIR 2000 SC 1886 128
30. Haryana Telecom Ltd. v. Sterlite Industries (India) Ltd.,
AIR 1999 SC 2354 130
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. M.M.T.C. Limited v. Sterlite Industries (India) Ltd., (1996) 6 SCC 716 131
32. Narayan Prasad Lohia v. Nikunj Kumar Lohia, AIR 2002 SC 1139 134
33. Datar Switchgears Ltd. v. Tata Finance Ltd.,2000 (3) Arb. LR 44 (SC) 139
34. SBP & Co. v. Patel Engg. Ltd.., 2005 (8) SCC 618 143
 35. Citation Infowares Limited v. Equinox Corporation,
2009(6) SCALE 430 166
36. Bhatia International v. Bulk Trading S.A., AIR 2002 SC 1432

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. Krishna Bhagya Jala Nigam Ltd. v. G. Arischandra Reddy

(2007) 2 SCC 720 173
38. Union of India v. Popular Construction Co (2001) 8 SCC 470 . 177
39. Union of India v. G.S. Atwal & Co., AIR 1996 SC 2965 181
40. New India Civil Erectors (P) Ltd.. v. ONGC, (1997) 11 SCC 75 186
41. Oil & Natural Gas Corporation Ltd. v. SawPipes Ltd.,
2003 (4) SCALE 92 190

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. Bhatia International v. Bulk Trading SA, AIR 2002 SC 1432

Topic 6: Conciliation (section 61-81)
43. Haresh Dayaram Thakur v. State of Maharashtra,
AIR 2000 SC 2281 193
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 2010-11 and 2011-12 are printed below for the guidance of the
students.
 LL.B. III Term Examinations, December, 2010
Note: Attempt five questions including Question No. 1 which is compulsory.
All questions carry equal marks.
1. Attempt briefly any four of the following:
(a) “Limitation bans and remedy and does not extinguish the title.” Discuss.
(b) “The law of limitation is a statute of repose and peace.” Comment.
(c) Explain ‘time requisite’ in Section 12 of Limitation Act, 1963.
(d) Discuss the procedure to challenge the appointment of an Arbitrator.
(e) What is meant by ‘Termination of Conciliation proceeding’? Explain.
PART – I
2. ‘X’ alienated his ancestral house to ‘Y’ by executing a sale deed along with possession on 5-
2-74. ‘X’ died on 14-12-85 leaving behind three minor sons L, M and N born on 10-01-
68, 10-10-71 and 30-8-73 M and N filed a suit against ‘Y’ on 20-2-1992 for setting aside
the alienation made by their father and for possession of their two-third share in the said
house. According to ‘Y’ the suit is barred by limitation. Do you agree? Decide with
reference to provisions of law of limitation and case law. (Limitation period is 12 years
from the Vendee).
3. (a) ‘X’ moved an application for stay in a suit for permanent injunction against ‘Y’ which
was allowed by the court on 31.03.2001. ‘Y’ filed an appeal court on 15.05.2001 against
the order of the trial court along with application for condo nation of delay, mentioning
that he had suffered heart attack and was admitted in the hospital from 24.04.2001 to
14.05.2011. (Authentic medical certificate was also enclosed).
Decide Y’s application for condonation of delay with case law.
(Limitation for filling appeal is 30 days).
(b) A suit was decreed in favour of Sham and against Ram on 20.03.2001. on the request of
Sham the court staff prepared the decree on 15.05.2001. Ram knew that no decree was
prepared upto 15.05.2001. Ram applied for the certified copy of the judgement and
decree on 7.7.2001 which were ready on 10.09.2001 and were received by Ram on
11.09.2001. Ram filed appeal on 15.09.2001. Sham contests on the ground that the appeal
is time-barred. Decide with relevant provisions of law and the case law.
(Period of filing appeal in the High Court is 90 days).
4. What are the essentials of a valid acknowledgement? Explain the distinction between
acknowledgement and a part-payment with reference to case law and the provisions of
Limitation Act, 1963.
PART II
5. (a) Define an Arbitration agreement and explain its essential ingredients.
 (b) ‘X’ and ‘Y’ entered into a contract. Dispute arose. As per the arbitration agreement
clause both appointed their arbitrator. The two arbitrators thus appointed their arbitrator.
The two arbitrators thus appointed started the proceedings in which both the parties
participated till end. The award was made and pronounced. After the announcement of
award ‘X’ challenges the composition/appointment of arbitral tribunal as against the
provisions of Section 10/11 of Arbitration Act, 1996. Discuss with case law.
6. (a) What is a Foreign Award as per New York Convention on Foreign Awards?
(b) Discuss the law laid down in ‘Bhatia International Vs. Bulk Tradings’ AIR 2002 SC
1432, when the place of arbitration is out of India and an application for interim measures
under Section 9 is moved before the court of India.
7. Do you agree that the function of Chief Justice of High Court while appointing an arbitrator
under Section 11(6) is judicial one? Discus the light of SBP & Co. Vs. Patel Engineering Ltd.
2005 (8) SCC 618.
8. (a) Under which provisions can the arbitral award e set aside?
(b) Under which conditions does the mandate of an arbitration terminate?
(c) Discuss the power of arbitrator to rule on its own jurisdiction.
(d) When does the conciliation proceedings commence?

LL.B. III Term Supplementary Examinations, June-July, 2011

Note: Attempt five questions including Question No. 1 which is compulsory.
All questions carry equal marks.
1. Attempt briefly any four of the following:
(a) Limitation Bars the remedy, doesn’t destroy the Right.
(b) Objective and Scope of Law of Limitation
(c) Define International Commercial Arbitration
(d) Explain the meaning of Arbitration Agreement
(e) Effect of Acknowledgement on limitation law.
PART – I
2. (a) The expression “sufficient cause” mean differently when the delay caused is required to
be condoned for state, whereas it conveys a different meaning when the delay caused is
required to b condoned in case of private individuals/parties. Comment.
(b) Explain the effect of fraud or mistake on Law of Limitation.

3. (a) Discuss the types of legal disabilities covered under law of limitation along with
illustrations.
 (b) What is the true meaning of expression. “Time requisite” for obtaining a copy of the
decree or order appealed from found in Sub section I of Sec. 12 of Limitation Act, 1963?

4. (a) Distinguish between Section 18&19 of the Limitation Act, 1963.

(b) Discus the limitation period in the following circumstances:
(i) Limitation for specific performance of contract.
(ii) Any suit for which the limitation period is prescribed elsewhere.
(iii) Limitation where no period is prescribed.
(iv) for execution of any decree (other than decree granting a mandatory injunction) or
order of any civil court.

PART II
5. When the subject matter of Arbitration is taken in the court by filing a suit what ought to be
the judicial approach as per the law of the Arbitration. Can the court suo-moto send the suit to
the arbitral tribunal. Discuss with relevant case law on the subject. Can the Question relating
to winding-up of company be refered to an Arbitrator.

6. Critically evaluate the appointment of Arbitrators by the court under the light of SBP & Co.
V. Patel Engineering & other recent judgements of the Apex court.
7. What is the scope of court’s jurisdiction in case where award passed by the Arbitral tribunal
is challenged under Section 34 of Arbitration & Conciliation Act, 1996.
8. What is conciliation? Discuss all the important provision of conciliation briefly as given in
the Arbitration & Conciliation briefly as given in the Arbitration & Conciliation Act, 1996
under the light of the decided case; Haresh Daya Ram Thakur V. State of Maharashtra. (AIR
2000 SC 2281).

LL.B. III Term Supplementary Examinations, June-July, 2011

Note: Answer any five questions in all, selecting atleast one question from each Part. All
question carry equal marks

1. (a) “Limitation bars the remedy, but does not destroy the light.” Discuss and state the
exception, if any.
(b) Explain the true scope of the expression ‘time requisite in Section 12 of the Limitation
Act, 1963.

2. (a) What is the effect of fraud and mistake on limitation? Support your answer with the help
of decided cases.
 (b) ‘A’ advanced a loan to ‘b’ on 01.01.2005. On 15.12.2007 ‘B’ wrote a letter to ‘c’ wherein
he stated that he owed the said sum of Rs. 1,000 to ‘A’. ‘A’ filed a suit on 15.11.2009 and
contented that though the suit has been filed three years after the advancing of the loan to
‘B’, the suit is in time in view of the admission of the liability in B’s letter to C. Can ‘A’
take advantage of the admission of the liability in the said letter to save limitation?
Decide with relevant statutory provisions. [Limitation Period— 3 Years]
3. (a) Cause of action accrued to a minor on 3rd May, 1996. He will attain majority on 7th June,
2000. Limitation for filing suit is only three years. Determine the date by which he should
file the suit. Support your answer with relevant statutory provisions and case laws.
(b) A incurs a debt to a firm of which E, F and G are partners. E and F are insane and G is a
minor when does the period of limitation run against them? Discuss in light of sections 6
and 7 of Limitation Act, 1963.
4. (a) What are the guiding principles for condonation of delay under Section 5 of the
Limitation Act, 1963?
(b) A State Government files an application in the High Court for condonation of delay in
filing an appeal on the ground that delay was caused in routing the matter through its law
department. Can this reason be accepted?
Is the position of government and private individuals same under Section 5?

PART II
5. (a) “Success of an arbitration proceeding depends upon the underlying arbitration clause.” In
the light of this statement, explain what are the ingredients of a good arbitration clause.
(b) ‘A’ and ‘B’ entered into an Arbitration Agreement in 1994 which provided that each
party shall nominate one Arbitrator and the Arbitrators so nominated shall appoint an
Umpire before proceeding with reference. A dispute referable to arbitrators arose
between ‘A’ and ‘B’ in 1997. By that time Arbitration and Conciliation Act, 1996 has
come into force and applied to the dispute between ‘A’ and ‘B’. ‘B’ rejected the request
for arbitration made by ‘A’ on the ground that since the Arbitration clause provided for
even number of arbitrator, it is an invalid clause and can it be given effect to in view of
Section 10 of the new act which provides for sole or an odd number of arbitrators?
Elucidate as to whether in such circumstances there exist a valid arbitration clause
between ‘A’ and ‘B’. If so, why? Support your contention with reason and the case law.
6. (a) Discuss the law laid down in Bhatia International v. Bulk Trading S.A. AIR 2002 SC
1432 in regard to applications for interim measures under Section 9 of the Arbitration and
 Conciliation Act, 1996 when the place of arbitration is out of India and an application for
interim measures under Section 9 is moved before the court of India.
(b) The main attraction of conciliation is the ‘confidentiality’ of proceedings. How is it
maintained during and after the proceedings.?
7. (a) What is the meaning of ‘Foreign Award’ as per Geneva Convention. On what grounds
the court suomotu refuse to enforce the foreign awards?
(b) Explain whether the power of appointment of arbitrator under Section 11 of the
Arbitration and Conciliation Act, 1996 is ‘judicial’ or ‘administrative’ in nature with the
help of case law.
8. Write short notes on any three of the following:
(a) Define ‘Public Policy’ in context of Section 34.
(b) Define International Commercial Arbitration.
(c) Waiver of right to object
(d) Appealable orders.
(e) Can the question regarding winding up of the company be referred to an arbitrator?

LL.B. III Term Examinations, December, 2011

PART-I

1. (a) “Limitation bars the remedy, but does not destroy the right.” Discuss and state the
exception, if any.
(b) Explain the true scope of the expression ‘time requisite’ in Section 12 of the Limitation
Act, 1963.
2. (a) What is the effect of fraud and mistake on limitation? Support your answer with the help
of decided cases.
(b) ‘A’ advanced a loan to ‘b’ on 01.01.2005. On 15.12.2007 ‘B’ wrote a letter to ‘C’
wherein he stated that he owned the said sum of Rs. 1,000 to ‘A’. ‘A’ filed a suit on
15.11.2009 and contented the though the suit has been filed three years after the
advancing of the loan to ‘B’, the suit is in time in view of the admission of the liability in
 B’s letter to C. Can ‘A’ take advantage of the admission of the liability in the said letter
to save limitation? Decide with relevant statutory provisions. (Limitation Period — 3
years]
3. (a) Cause of action accrued to a minor on 3rd May, 1996. He will attain majority on 7th June,
2000. Limitation for filing suit is only three years. Determine the date by which he should
file the suit. Support your answer with relevant statutory provisions and case laws.
(b) A incurs a debt to a firm of which E, F and G are partners. E and F are insane and G is a
minor when does the period of limitation run against them? Discuss in light of Sections 6
and 7 of Limitation Act, 1963.
4. (a) What are the guiding principles for condonation of delay under Section 5 of the
Limitation Act, 1963?
(b) A State Government files and application in the High Court for condonation of delay in
filing an appeal on the ground and delay was caused in routing the matter through is law
department. Can this reason be accepted?
In the position of Government and provide individuals same under Section 5?
PART II
5. (a) “Success of an arbitration proceeding depends upon the underlying arbitration clause.” In
the light of this statement, explain what are the ingredients of a good arbitration clause.
(b) ‘A’ and ‘B’ entered into an Arbitration Agreement in 1994 which provide that each party
shall nominate one Arbitrator and the Arbitrators so nominated shall appoint an Umpire
before proceeding with reference. A dispute referable to arbitrators arose between ‘A’
and ‘B’ in 1997. By that time Arbitration and Conciliation Act, 1996 has come into force
and applied to the dispute between ‘A’ and ‘B’. ‘B’ rejected the request for arbitration
made by ‘a’ on the ground that since the Arbitration clause provided for even number of
arbitrator, it is an invalid clause and can it be given effect to in view of Section 10 of the
new act which provides for sole or an odd number of arbitrators?
 Elucidate as a whether in such circumstances there exist a valid arbitration clause between
‘A’ and ‘B’ If so, why? Support your contention with reasons and the case law.
6. (a) 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, 1996 when the place of arbitration is out of India and an application for
interim measures under Section 9 is moved before the court of India.
7. (a) What is the meaning of ‘Foreign Award’ as per Geneva Convention. On what grounds
the court suomotu refuse to enforce the foreign awards?
(b) Explain whether the power of appointment of arbitrator under Section 11 of the
Arbitration and conciliation Act, 1996 is ‘judicial’ or ‘administrative’ in nature with the
help of case law.
8. Write short notes on any three of the following:
(a) Define ‘Public Policy’ in context of Section 34.
(b) Define International Commercial Arbitration.
(c) Waiver of right of object
(d) Appealable orders.
(e) Can the question regarding winding up of the company be referred to an arbitrator?

LL.B. III Term Examinations, June-July, 2012

PART-I

1. Attempt any three of the following:

(a) Limitation only trans the remedy, but does not destroy the rights. Explain.
(b) Differentiate Section 18 and 19 of the limitation act – 1963.
(c) What is the effect of fraud or mistake on the limitation?
(d) Policy and scope of law of limitations.
2. (a) Limitation period for filing a suit expired on 01.01.2005. On 14.11.2005, the appellant
filed the appeal. He filed an application under section 5 for condoning the delay on the
ground that from 31.12.2004 to 02.05.2005 he was out of Mumbai; from 07.05.2005 to
04.09.2005 he was admitted in hospital which was authenticated by the medical
certificate and from 15.09.2005 to 13.11.2005 he had to go on an urgent business tour.
Decide with can law whether the delay be condoned under section 5.

(b) The period of limitation prescribed for a suit expires on a day when the court is closed.
Does the limitation act provide for any remedy?

3. Ram sold his ancestral property to Sham by a sale deed on 05.02.1984 and handed over the
possession on the same day. Ram died on 14.12.1995 leaving behind his minor sons. X, Y
and Z born on 10.01.78, 10.10.81 and 30.08.83. ‘Y’ and ‘Z’ filed a suit against Sham on
20.02.2002 for setting aside the alternation by their father and for possession of their two
third (2/3) share in the said property. Sham in his reply contests on the ground that the suit is
barred by limitation. Decide with reference to statutory provisions and case law. (Limitation
period is 12 years to be counted from the date of possession of the property by the vender).

4. A decree was passed in favour of ‘X’ and against ‘Y’ on 27.03.2006. “X” applied for the
certified copy of decree which was prepared on 06.05.2006. It was in the knowledge of ‘Y’
that there was no decree on the file of the court till 06.05.2006. “Y” applied for the certified
copy of judgement and degree on 14.07.2006 which were received by ‘Y’ on 17.9.06, ‘Y’
filed the appeal on 29.09.2006. Is the appeal in time? Decide with case law if the period of
limitation is 90 days.

PART-II

5. Attempt any three of the following:

(a) Discuss the provisions with regard to challenge to the appointment of arbitrators.
(b) Is the following clause 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 specifications, designs and drawings.
(c) Explain the ‘Role of Conciliator’, When does the conciliation proceedings terminate?
(d) Define Foreign Awards as per New York Convention.
6. Discuss the law laid down in ‘Bhatia International vs. Bulk Trading S.A. with respect to
application for interim measures under Section 9 of the Arbitration and Conciliation Act-
1996 when the place of arbitration is in any other country.
7. (a) Discuss the grounds on which an arbitral award may be challenged.
(b) Discuss the power of an arbitrator to rule on his own jurisdiction.
8. An arbitration agreement provides for two arbitrators whereas as per Sec 19(1) of
“Arbitration Act 1996, the number of arbitrators shall not be an even number. Is the
arbitration agreement appointing two arbitrations a valid agreement? Discuss with case law.
 LL.B. III Term

Limitation and Arbitration

Cases Selected and Edited by

Niraj Kumar

FACULTY OF LAW
UNIVERSITY OF DELHI, DELHI-110 007
July, 2012