Judicial Scope Under the 1940 Arbitration Act and Principles Governing Limitation and Interest

sketch of the Bombay High Court
Case
THE MUNICIPAL CORPN. OF GR. BOMBAY v. ATUL RAJ BUILDERS PVT LTD (Bombay High Court, 03-09-2026)
Law
Limitation Act, Mumbai Municipal Corporation Act.

Highlights of the Judgment:

  • Examination of limitation under Article 119(b) of the Limitation Act and Section 14(2) of the 1940 Arbitration Act regarding award filing knowledge.
  • Analysis of judicial interference scope under Section 30 of the 1940 Act concerning legal misconduct and errors apparent on record.
  • Distinction between the 1940 and 1996 Arbitration Acts regarding the permissibility of awarding interest on interest.
  • Review of arbitral grants covering loss of profit, overheads, and reduced productivity arising from project delays.
  • Interpretation of formal contract requirements under the Mumbai Municipal Corporation Act for invoking arbitration clauses.