Section 43 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 43, headed "Limitations" in the text consulted, applies the Limitation Act, 1963 to arbitrations as it applies to proceedings in court. It fixes the date from which an arbitration is treated as begun, lets the Court extend a contractual time bar where undue hardship would otherwise result, and excludes time from the limitation count when an award is set aside. This article reads it as per the India Code consolidated text consulted and states no limitation period, because the section states none. If a notice invoking arbitration is still to be sent, see our legal notice drafting service.
Under section 43(1), the Limitation Act, 1963 applies to arbitrations as it applies to proceedings in court. Under sub-section (2), an arbitration is deemed to have commenced on the date referred to in section 21. Under sub-section (3), the Court may extend a time fixed by the agreement for taking a step to commence arbitral proceedings, if undue hardship would otherwise be caused. Under sub-section (4), where the Court sets an award aside, the period between the commencement of the arbitration and the Court's order is excluded in counting limitation for fresh proceedings.
Sub-section (1): the Limitation Act applies
"The Limitation Act, 1963 (36 of 1963), shall apply to arbitrations as it applies to proceedings in court." The section does not set a period. How long a claim can wait before an arbitration is begun is a matter for the Limitation Act, 1963 itself, which this article does not summarise. Our posts on that Act deal with the periods: see limitation period for contract suits, sections 3 and 4 of the Limitation Act, 1963, section 5 on condonation of delay, section 14 on exclusion of time, and the Articles 118 to 123 post from the Schedule to that Act.
Note the title. The section is headed "Limitations." in the text consulted, in the plural with a full stop.
Sub-section (2): the arbitration is deemed to commence on the section 21 date
"For the purposes of this section and the Limitation Act, 1963 (36 of 1963), an arbitration shall be deemed to have commenced on the date referred to in section 21."
Section 21 provides that, unless otherwise agreed by the parties, the arbitral proceedings in respect of a particular dispute commence on the date on which a request for that dispute to be referred to arbitration is received by the respondent. Sub-section (2) therefore links the limitation clock to the date of receipt of that request by the respondent. Our article on section 21 explains the date. In practice, that is why a written notice invoking arbitration should be served in a way that proves the date of receipt; see our guide on the format of a legal notice.
Sub-section (3): extension of a contractual time bar
Some arbitration agreements say that a claim will be barred unless some step to commence arbitral proceedings is taken within a time fixed by the agreement. Sub-section (3) covers an agreement "to submit future disputes to arbitration" that provides this. Where 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:
- extend the time "for such period as it thinks proper", and
- do so "on such terms, if any, as the justice of the case may require".
Points to read carefully:
- The power belongs to "the Court". See section 2(1)(e) and our article on section 42.
- The test is "undue hardship". The section does not define it.
- The section covers a time fixed "by the agreement". It does not extend time under the Limitation Act itself; that Act has its own provisions.
- No period of extension is fixed. The Court decides what it thinks proper.
Sub-section (4): time excluded after an award is set aside
"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, 1963 (36 of 1963), for the commencement of the proceedings (including arbitration) with respect to the dispute so submitted."
So if the Court sets the award aside under section 34 (see the section 34 post), the stretch from the commencement of the arbitration (the section 21 date) to the date of the Court's order does not count against the claimant when it starts proceedings again, including a fresh arbitration. The sub-section speaks of an order that "an arbitral award be set aside". It does not mention an order refusing to set aside.
The Bihar entry
Under section 43 the text consulted prints a "STATE AMENDMENT" for Bihar. It is headed "Omission of sub-section (3) of Section-43 of the Arbitration and Conciliation Act, 1996" and ends with the citation "". The body of the entry is garbled in the print: it reads "Sub. by Section-3 of the Section 43 of the said Act shall be omitted". This article therefore says only that the text shows a Bihar State amendment headed as an omission of sub-section (3), with the citation as printed. It is a State entry and is not the rule in the central text. Anyone dealing with a Bihar matter should check the Bihar Act itself.
Where section 43 meets other parts of the Act
| Provision | What it says on time | How it connects to section 43 |
|---|---|---|
| Section 21 | Proceedings commence when the respondent receives the request | Section 43(2) uses that date |
| Section 9(2) | Where a court passes an interim order before arbitral proceedings begin, arbitration is to commence within the period that sub-section states, or such further time as the Court may determine | A separate period, set by the Act itself |
| Sections 23(4) and 29A(1) | Periods that run later in the proceedings | Run after commencement |
| Section 34(3) | The sub-section sets its own time limit for an application to set aside the award | A separate limit for the challenge |
| Section 2(4) | Excludes section 43 from the Part I provisions applied to arbitrations under other enactments | Section 43 does not apply to those arbitrations by that route |
The figures in those sections are explained in the articles on them; section 43 itself adds none.
An example
Meridian Fabrics Pvt Ltd's supply contract says that any claim is barred unless notice to refer to arbitration is given within a stated number of months of delivery. A dispute arises, and the stated time passes. Under section 43(3), if the Court is of opinion that undue hardship would otherwise be caused, it may extend the time on such terms as the justice of the case may require. If the arbitration goes ahead, the date of commencement is the date on which Harbour Retail LLP, the respondent, receives Meridian's request (section 21). If the Court later sets the award aside, section 43(4) excludes the period from that date to the date of the Court's order in computing the time for starting fresh proceedings.
Need help with a limitation or notice problem?
Where a claim is close to a contractual or statutory time limit, the date on which the other side receives your request often decides the position. Our legal notice drafting service can prepare the notice and the proof of receipt, and our team can review the dates with you.
Key takeaways
- The Limitation Act, 1963 applies to arbitrations as it applies to proceedings in court; section 43 itself fixes no period.
- An arbitration is deemed to commence on the date referred to in section 21, the date the respondent receives the request.
- The Court may extend a time fixed by the agreement for taking a step to commence arbitral proceedings where undue hardship would otherwise be caused.
- If the Court sets an award aside, the time from commencement of the arbitration to the Court's order is excluded in computing limitation for fresh proceedings.
- A Bihar State entry, headed as an omission of sub-section (3), is printed with a garbled body; read the Bihar Act for a Bihar matter.
Read next
- Sections 43A and 43B: Arbitration Council of India, definitions and establishment
- Section 21: commencement of arbitral proceedings
- Sections 40–41: death of a party and insolvency
- Limitation period for filing suits and appeals
Disclaimer: Based on the India Code consolidated text of the Arbitration and Conciliation Act, 1996, whose footnotes show amendments up to Act 3 of 2021 and a latest date of 12 October 2023, as consulted on 2 October 2026. Rules, regulations and notifications under the Act, later amendments and the commencement of the Mediation Act, 2023 should be checked. This article is general information, not legal advice; check the official text before acting.