MEGHA ENTERPRISES Vs. STATE FB

JUDGEMENT

(1.) What is the ambit and scope of Art. 181 of the JandK Limitation Act ? Does it prescribe limitation for all types of applications under all special enactments including applications under S.20 of the Arbitration Act or for applications under the Code of Civil Procedure only?

(2.) These questions arise out of the applications filed by the appellants under S. 20 of the Arbitration Act seeking reference of some disputes to the arbitrator. The applications were resisted by the respondent-State on the plea of limitation and eventually rejected by the learned single Judge as time barred vide judgment dated 29-12-1989. The matter went in appeal to the Division Bench which has referred the following question "for authoritative pronouncement by the Full Bench : "Whether Art, 181 of the Limitation Act is applicable to applications filed under S. 20 of the Arbitration Act?" Before we proceed to formulate our answer, we deem it appropriate to bring out the close similarity between the State Act of 1938 and the Central Act of 1908. One is the true copy of the other. Their preamble is identical and their other provisions similar. The preamble of both the Acts reads thus: "Whereas it is expedient to consolidate and amend the law relating to limitation of suits, appeals and certain applications to courts; and xx xx xx xx The same holds true about S. 3 which provides that every suit and application made after the period of limitation prescribed therefor in the first schedule, shall be dismissed, although limitation has not been set up as a defence. The first schedule in both comprises of three Divisions. The first Division deals with suits, the second with appeals and the third with applications. The third Division comprises of Arts.158 to 183. Article 181 figures in this Division and stands thus: " Description of application Period of Limitation Time from which period begins to run 181. Application for which no period of limitation is provided elsewhere in this schedule or by Section 48 of the Code of Civil Procedure." Three years When the right apply accrues to

(3.) Article 181 of the Central Act has received considerable attention by the courts over a period of time. Therefore, it has a mass of precedent behind it and we have a lot to draw from. To that extent we are not traversing any virgin field and it becomes rather easy to approach the issue in the context of the meaning already. attached to the provision by a long line of judgments. We deem it proper to refer to these judgments first for better appreciation of the controversy and for proper construction to be placed on Art.181.