Execution Application Filed by Arch Construction Co. Against Union of India Deemed Timely Following Supreme Court's Directive on COVID-19 Period Exclusion
In a significant ruling, the Bombay High Court has validated the execution application filed by Arch Construction Co. against the Union of India, by acknowledging the exclusion of the COVID-19 period for limitation purposes. The court, presided over by Justice Abhay Ahuja, addressed the objection raised by the Registry regarding the timeliness of the execution application, which was filed on December 8, 2025.
The court found merit in the argument presented by Ms. Fleur D'Souza, representing Arch Construction Co., who contended that the Supreme Court's directives in the case of Cognizance For Extension of Limitation, In Re should be applied. This Supreme Court ruling mandates the exclusion of the period from March 15, 2020, to February 28, 2022, from the computation of limitation periods due to the COVID-19 pandemic.
Justice Ahuja noted that the arbitral award, initially enforceable from July 19, 2013, had a 12-year limitation period under Section 36 of the Limitation Act, 1963, which was set to expire on July 19, 2025. However, in light of the Supreme Court's exclusion directive, the new expiration date for the limitation period was recalculated to July 4, 2027.
The court also drew support from another Supreme Court judgment in IL & FS Financial Services Limited v. Adhunik Meghalaya Steels Pvt. Ltd., which reinforced the exclusion of the COVID-19 period for limitation purposes. This precedent further bolstered the application of the Cognizance ruling to the current case.
Justice Ahuja emphasized the distinction between exclusion and extension of time under the Limitation Act. While extension requires acts like acknowledgment of liability before the limitation period expires, exclusion simply omits the specified period from computation, with no requirement for the limitation period to have commenced or expired during the excluded period.
Consequently, the Bombay High Court directed the Registry to waive the limitation objection and proceed with the registration of the execution application, ensuring that justice is served without procedural impediments.
Bottom line:-
Limitation period for execution of an arbitral award under Section 36 of the Limitation Act, 1963, must exclude the period from 15th March, 2020 to 28th February, 2022, in light of the Supreme Court's ruling in Cognizance For Extension of Limitation, In Re (2022) 3 SCC 117.
Statutory provision(s): Arbitration and Conciliation Act, 1996 Section 36, Limitation Act, 1963 Sections 3, 12 to 15, 36
Arch Construction Co. v. Union of India, (Bombay) : Law Finder Doc id # 2927119
