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Report No. 76

8.51. Effect on fresh arbitration.-

Another important question that arises is whether the benefit of relaxation of limitation is available for arbitration in such cases. Section 14 of the Limitation Act, 1963 (previously section 14 of the Indian Limitation Act, 1908), so far as is relevant, provides,1 that in computing the period of limitation prescribed for any suit, the time during which the plaintiff has been prosecuting with due diligence another civil proceeding in a court against the defendant shall be excluded where the proceeding relates to the same cause of action and is prosecuted in good faith in a court which, from defect of jurisdiction or other causes of a like nature, is unable to entertain it.

1. This point was not dealt with in the 3rd Report of the Law Commission (Limitation Act) while discussing section 14, pp. 18 to 20, paras. 41 to 43.

Arbitration Act, 1940 Back

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