14 September 2021 | Reebok International Limited v. Focus Energy Limited | OMP (EFA)(COMM.) 2/2021 | C Hari Shankar J | High Court of Delhi | 2021 SCC OnLine Del 4414

In Union of India v. Vedanta Ltd., (2020) 10 SCC 1, on 16 September 2020, a 3-judge bench of the Supreme Court ruled that the period of limitation for filing a petition for enforcement of a foreign award under Sections 47 and 49 ACA would be governed by Article 137 of the Limitation Act, 1963 which prescribes three years from when the right to apply accrues.

Before this ruling, some High Courts had taken the view that the limitation period was 12 years.

In this case, a partial final award was made on 04 November 2019 (determining Focus’s liability to sell its shareholding in a joint venture company). The final award (determining the price) was made on 25 May 2011. After the award, Focus filed set aside applications under Section 34 ACA in the Delhi High Court. As a result, under the pre-2015 regime, the awards were automatically stayed. Both set aside applications were dismissed on the issue of jurisdiction on 01 November 2018. The execution petition was filed on 23 December 2020.

Delay in filing was condoned given the uncertainty of law clarified in Vedanta. The court also considered the automatic stay regime before 2015.

Read the decision here.