ASIA RESORTS LTD. versus USHA BRECO LTD.

ASIA RESORTS LTD. versus USHA BRECO LTD.

Cause of action for filing the application under Section 20 of the Arbitration Act, 1940 arose on 17.5.1990, when the respondent gave a definite reply denying the claims. The application filed after more than three years was time-barred, but the delay could be condoned as it was not willful, provided costs were paid.

Parties
Appellant: Asia Resorts Ltd.; Respondent: Usha Breco Ltd.
Jurisdiction
India
Judgment Date
30 October 2001
Procedural Posture
Civil Appeal / Appeal From Division Bench Judgment of Himachal Pradesh High Court
Outcome
Appeal allowed conditionally
Legal Topics
Limitation of Arbitration Applications, Applicability of Limitation Act Article 137, Condonation of Delay Under Section 5 Limitation Act
Arbitration Limitation Limitation of Arbitration Applications Applicability of Limitation Act Article 137 Condonation of Delay Under Section 5 Limitation Act

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Parties

Asia Resorts Ltd.

Appellant

Usha Breco Ltd.

Respondent

Procedural Posture

Civil Appeal / Appeal From Division Bench Judgment of Himachal Pradesh High Court

Legal Issues

  1. 1 Whether the application under Section 20 of the Arbitration Act, 1940 was time barred
  2. 2 Applicability of Article 137 of the Limitation Act, 1963 to arbitration petitions
  3. 3 Whether delay in filing the arbitration application can be condoned under Section 5 of the Limitation Act

Ratio Decidendi

Cause of action for filing the application under Section 20 of the Arbitration Act, 1940 arose on 17.5.1990, when the respondent gave a definite reply denying the claims. The application filed after more than three years was time-barred, but the delay could be condoned as it was not willful, provided costs were paid.

Court Disposition

Appeal allowed conditionally

Orders

  • Delay in filing application under Section 20 of Arbitration Act, 1940 condoned on condition appellant pays Rs. 20,000 to respondent within one month.
  • Appeal stands allowed and matter remitted to High Court for proceedings under Arbitration Act, 1940.