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The High Court of Bombay, in the matter titled as Laguna Resort Pvt Ltd v Concept Hospitality Pvt Ltd.1, through its judgement dated 17.12.2025, held that Section 43(4) of the A&C Act which provides for a time-limit extension for new proceeding, is not confined to cases where an arbitral award is set aside in its entirety, and would equally apply where a portion of the award is severed, provided the right to sue in respect of such severed part continues to subsist.
The High Court held that the expression "the dispute" under Section 43(4) of the A&C Act must be construed purposively, and that the concept of similarity of dispute applies even to a part of the dispute forming subject matter of an earlier arbitral proceeding. Further, the High Court observed that where an arbitral award comprising multiple claims is severed and the bad part of the award is set aside, the claimant is entitled to pursue an alternate remedy in respect of that severed part, and the time spent in the earlier arbitration proceedings is liable to be excluded while computing limitation.
Footnote
1. I.A. No. 1742 of 2024 in Commercial Arbitration Petition No. 19 of 2024.
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