Is there a limitation period for filing an application under Sec 8 Arbitration Act? Delhi HC says yes

The Delhi High Court has held that pursuant to the 2016 amendments, the limitation for filing of the written statement as prescribed in the Civil Procedure Code, 1908 as also the Commercial Courts Act, 2015 will be applicable at the time of filing an application under Section 8 of the Arbitration & Conciliation Act, 1996. (SSIPL Lifestyle vs Vama Apparels).The Judgment was passed by a Single Judge Bench of Justice Prathiba M Singh in suits by Plaintiff, SSIPL Lifestyle Pvt Ltd against two Defendants, namely, Vama Apparels (India) Private Limited and Jaya Pramanand Patel for recovery of sums of Rs 2,17,31,781 and Rs 3,38,73,866, respectively..Vama, however, moved two applications under Section 8 of the Arbitration Act in each of the suits..The Plaintiff opposed any referral to arbitration and argued that the time period for filing of the Section 8 application was over in view of the expiry of the limitation for filing of written statement..It was contended that in view of the amended provision which came into effect from October 23, 2015, Section 8 application had to be filed “not later than the date of submitting his first statement on the substance of dispute”..The use of word ‘date’, it was contended, meant that the time period available for filing of Section 8 application had to be read with the time period of filing of written statement under the CPC..The Court noted that issue in the present case pertained to the difference between the phrases ‘not later than when submitting’ in the pre-amendment Section 8 and ‘not later than the date of submitting’ in the amended Section 8..The Court opined that as far as the un-amended Section 8 was concerned, it was settled that the objections to Section 8 could be contained in the written statement itself or it could be moved along with the written statement itself..“The question, however, is whether the adding of the words ‘the date of’ means that the date for filing a written statement in a suit would be considered as the limitation period for filing of a Section 8 application.”, the Court remarked..To answer the question, the Court perused a series of judgments on the issue and stated that the amendment was introduced to ensure alacrity and speed..“The Legislature has now made a conscious change by using the language “not later than the date of”. The use of the word ‘date’ itself signifies precision. A perusal of the various amendments brought about in 2016 Amendment Act show that the intention was to tighten the time limit within which arbitration proceedings should commence and conclude.”Delhi High Court.The Court added, .".. the amendment is a conscious step towards prescribing a limitation period for filing the Section 8 application. The mention of the word “date” in the amended provision means that it is a precise date and usually incapable of ambiguity. The same is a crystalized date and not a ‘period’ prior to the filing of the first statement on the substance of the dispute."Delhi High court.The Court thus opined that the outer limit for filing of a Section 8 was now the date of submitting the statement on the substance of the dispute i.e. the date of filing written statement..The Court also clarified that under the present arbitration regime, an arbitration clause could be waived by a party by either filing of a statement of defence/submitting to jurisdiction or by unduly delaying the filing of the application under Section 8 beyond the date by which the statement of defence could have been filed..As far as the present case was concerned, the Court dismissed the Section 8 application as it was not filed within the prescribed period..The Plaintiff was represented by Advocate Alishan Naqvee, Mohd Kamran, Parul Parmar..The Defendants were represented by Advocate Somya Jaitly. .Senior Advocate Darpan Wadhwa appeared as Amicus curiae with Advocates Aditi Mohan, Aishwarya..Read the Judgement: