VOLTAS LTD. versus ROLTA INDIA LTD.

VOLTAS LTD. versus ROLTA INDIA LTD.

Counter claims in arbitration are limited by the period of limitation prescribed, computed from the date when notice of such claim was served on the claimant; claims not specified in such notice cannot be subsequently added and are not saved by the exception for prior notice; here, only the value of claims as detailed in the letter of 17.4.2006 (civil contract) and 21.3.2006 (air-conditioning contract) remain within limitation.

Parties
Appellant: Voltas Ltd.; Respondent: Rolta India Ltd.
Jurisdiction
India
Judgment Date
14 February 2014
Procedural Posture
Civil Appeal / Appeal From Division Bench of High Court (bombay) Decision Overruling Single Judge; Supreme Court Judgment
Outcome
Appeals partly allowed; Division Bench judgment modified.
Legal Topics
Limitation Period for Counter Claims in Arbitration, Computation of Limitation Under Arbitration and Conciliation Act, 1996
Arbitration Limitation Limitation Period for Counter Claims in Arbitration Computation of Limitation Under Arbitration and Conciliation Act, 1996

Case Brief

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Parties

Voltas Ltd.

Appellant

Rolta India Ltd.

Respondent

Procedural Posture

Civil Appeal / Appeal From Division Bench of High Court (bombay) Decision Overruling Single Judge; Supreme Court Judgment

Legal Issues

  1. 1 Whether the counter claim filed by the respondent before the arbitrator was barred by limitation under Arbitration and Conciliation Act, 1996.
  2. 2 How limitation for counter claims in arbitration is to be computed.

Ratio Decidendi

Counter claims in arbitration are limited by the period of limitation prescribed, computed from the date when notice of such claim was served on the claimant; claims not specified in such notice cannot be subsequently added and are not saved by the exception for prior notice; here, only the value of claims as detailed in the letter of 17.4.2006 (civil contract) and 21.3.2006 (air-conditioning contract) remain within limitation.

Court Disposition

Appeals partly allowed; Division Bench judgment modified.

Orders

  • Interim award passed by Arbitrator rejecting counter claims in toto stands nullified.
  • Counter claims are restricted to the amounts stated in letters dated 17.4.2006 (Rs.68,63,72,178.08) for civil contract and 21.3.2006 (Rs.19,99,728.58) for air-conditioning contract.