Delhi HC: Time Spent in Wrong Court Excluded from Limitation Period Under Section 34 Arbitration Act

The Delhi High Court has ruled that the time spent prosecuting an application before the wrong court should be excluded when calculating the three-month limitation period under Section 34(1) of the Arbitration & Conciliation Act, 1996.

The Court held that proceedings before the incorrect court must be bona fide and pursued with due diligence. 

Relying on precedents, including Consolidated Engg. Enterprises v. Principal Secy. Irrigation Deptt., the court set aside the District Judge’s order, clarifying that Section 14 of the Limitation Act applies to arbitration matters.

The case involved Incite Homecare Products Pvt Ltd challenging the dismissal of their application as time-barred.