(1) The Limitation Act (36 of 1963), shall apply to arbitrations as it applies to proceedings in court.
(2) For the purposes of this section and the Limitation Act (36 of 1963), an arbitration shall be deemed to have commenced on the date referred to in section 21.
(3) Where an arbitration agreement to submit future disputes to arbitration provides that any claim to which the agreement applies shall be barred unless some step to commence arbitral proceedings is taken within a time fixed by the agreement, and a dispute arises to which the agreement applies, the Court, if it is of opinion that in the circumstances of the case undue hardship would otherwise be caused, and notwithstanding that the time so fixed has expired, may, on such terms, if any, as the justice of the case may require, extend the time for such period as it thinks proper.
(4) Where the Court orders that an arbitral award be set aside, the period between the commencement of the arbitration and the date of the order of the Court shall be excluded in computing the time prescribed by the Limitation Act (36 of 1963), for the commencement of the proceedings (including arbitrations) with respect to the dispute so submitted.
Legal Commentary & Landmark Judgments: Section 43
Section 43 of the Arbitration and Conciliation Act, 1996 establishes that the Limitation Act, 1963 shall apply to arbitrations as it applies to proceedings in court, prescribing that arbitration commences on the date of receipt of the Section 21 notice.
Never delay issuing the Section 21 notice; compute the 3-year limitation period from the date of cause of action under the Limitation Act schedule; once 30 days lapse after notice receipt, file the Section 11 petition within 3 years under BSNL v. Nortel.