In Brief
An entity in the UAE financed a telecom project for an Indian company under a 2004 Memorandum of Understanding (MoU). Disputes over repayment arose, resulting in dishonoured cheques presented in 2011 and criminal proceedings under the Negotiable Instruments Act. Eleven years later, in 2022, the creditor sought arbitration. The Supreme Court dismissed the arbitration petition, holding that the claim was manifestly time-barred (beyond the three-year limitation period) and that courts may decline to refer ex-facie dead claims to arbitration. Criminal and arbitration proceedings are independent; institution of criminal proceedings does not extend the limitation period for arbitration.
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