Tag: Limitation Act

Clarifying Jurisdiction: Supreme Court Reaffirms Exclusive Power of MP Arbitration Tribunal for Public Works
28Aug By The Legal ChamberNo Comments
Supreme Court

Clarifying Jurisdiction: Supreme Court Reaffirms Exclusive Power of MP Arbitration Tribunal for Public Works

The Supreme Court upheld the exclusive jurisdiction of the Madhya Pradesh Arbitration Tribunal over disputes arising from state works contracts, as per the MP Madhyastham Adhikaran Adhiniyam, 1983. It ruled that a private arbitration clause in a concession agreement cannot override this statutory mandate, rendering such arbitration non-est in law. Facts Of The Case: The dispute arose from a Concession Agreement dated 05.01.2012 between Umri Pooph Pratappur Tollways Pvt. Ltd. (Appellant) and the Madhya Pradesh Road Development Corporation (Respondent) for the development of a state highway on a BOT (Toll + Annuity) basis. Following alleged breaches and delays attributed to the Respondent, the Appellant first initiated proceedings in 2018 before the Madhya Pradesh Arbitration Tribunal, a s...
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Supreme Court: Company Balance Sheets Can Reset Limitation Clock for Creditors Under IBC
26Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court: Company Balance Sheets Can Reset Limitation Clock for Creditors Under IBC

The Supreme Court held that entries in a company’s balance sheet, when read in the context of surrounding circumstances and previous financial statements, can constitute a valid acknowledgment of debt under Section 18 of the Limitation Act, 1963, thereby extending the limitation period for filing an application under Section 7 of the IBC. The Court clarified that the exclusion period under its COVID-19 limitation order applied from 15.03.2020 to 28.02.2022, making the application timely. Facts Of The Case: The appellant, IL & FS Financial Services Ltd., extended a term loan of ₹30 crores to the respondent, Adhunik Meghalaya Steels Pvt. Ltd., on 27.02.2015, secured by a pledge of shares. The respondent's account was declared a Non-Performing Asset (NPA) on 01.03.2018. The appellant fi...
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Supreme Court Rules: Rejecting Job Regularization on Multiple Grounds is Not Contempt of Court
25Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules: Rejecting Job Regularization on Multiple Grounds is Not Contempt of Court

The Supreme Court held that the authority's order, which rejected regularization claims on multiple fresh legal grounds—including qualifications and financial burden—constituted valid compliance with the High Court's direction. Since the rejection was not solely based on the prohibited "contract labour" ground, it could not be construed as wilful disobedience amounting to contempt of court. Facts Of The Case: The case originated from drivers engaged by the New Okhla Industrial Development Authority (NOIDA) seeking regularization of their services. Their initial representation was rejected by the NOIDA CEO in 2017 solely on the ground that they were intermittent workers hired through a contractor. This rejection was challenged and set aside by the Allahabad High Court in February 2020, wh...
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Supreme Court Clarifies: Limitation Act Applies to MSMED Arbitration But Not Conciliation
13Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Clarifies: Limitation Act Applies to MSMED Arbitration But Not Conciliation

The Supreme Court ruled on the applicability of the Limitation Act, 1963, to conciliation and arbitration proceedings under Section 18 of the MSMED Act, 2006. It held that the Limitation Act does not apply to conciliation proceedings, allowing time-barred claims to be referred for settlement. However, the Act applies to arbitration proceedings under Section 18(3), as Section 43 of the Arbitration and Conciliation Act, 1996, incorporates the Limitation Act into such arbitrations. The Court emphasized that the MSMED Act’s provisions override general laws, ensuring a balanced approach to dispute resolution while protecting suppliers' rights. The disclosure of unpaid amounts in financial statements under Section 22 may extend limitation periods, subject to case-specific scrutiny. Facts Of The...
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Supreme Court : Res Judicata & Limitation Apply Even if Court Grants Liberty
4Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court : Res Judicata & Limitation Apply Even if Court Grants Liberty

The Supreme Court held that the liberty granted by the High Court to file a fresh suit does not revive a time-barred cause of action or override the principles of res judicata. The Court affirmed that limitation under the Limitation Act and Order 23 Rule 2 CPC applies strictly, and a fresh suit cannot re-agitate issues already decided in prior proceedings. The judgment reinforces that judicial liberty cannot circumvent statutory bars or reopen conclusively adjudicated matters. Facts Of The Case: The case involved a dispute over a property transaction where the original plaintiff (predecessor of the petitioners) had entered into a sale agreement with the first defendant, a cooperative housing society. A Power of Attorney (PoA) was executed in favor of the society’s secretary (second defen...
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Supreme Court Allows Execution Petition: No Time Limit for Enforcing Permanent Injunctions
26May By The Legal ChamberNo Comments
Supreme Court

Supreme Court Allows Execution Petition: No Time Limit for Enforcing Permanent Injunctions

The Supreme Court ruled that a decree of permanent injunction creates a perpetual right enforceable at any time against future breaches, clarifying that satisfaction recorded in one execution petition doesn't bar subsequent petitions under Section 47 CPC for fresh violations. It held that Article 136 of the Limitation Act imposes no time limit for enforcing perpetual injunctions, rejecting the erroneous application of res judicata by lower courts. The judgment emphasizes that each breach of injunction constitutes a fresh cause of action, requiring executing courts to examine subsequent execution petitions on merits regardless of prior disposals. The Court distinguished between temporary and permanent injunctions while underscoring the continuing nature of injunctive relief. Facts Of The C...
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