Under Section 11, the court cannot go into the issue of limitation; SC.
- 02:14Supreme Court of India
Justice Indu Malhotra & Justice Ajay Rastogi
The issue which has fallen for consideration before the SC is whether the High Court was justified in rejecting the application filed under Section 11 for reference to arbitration, on the ground that it was barred by limitation.
It was held by the SC {Uttarakhand Purv Sainik Kalyan Nigam Limited v. Northern Coal Field Limited } that the legislative intent underlying the 1996 Act is party autonomy and minimal judicial intervention in the arbitral process. Under this regime, once the arbitrator is appointed, or the tribunal is constituted, all issues and objections are to be decided by the arbitral tribunal.
In view of the provisions of Section 16, and the legislative policy to restrict judicial intervention at the prereference stage, the issue of limitation would require to be decided by the arbitrator.
In view of that the SC set aside the impugned judgment and order dated 11.01.2018 passed by the High Court, and directed that the issue of limitation be decided by the arbitral tribunal.