Kerala High Court Rules That Contractually Imposed Time Limits For Invoking Arbitration In Deviation Of The Limitation Act Are Void

Introduction

The Kerala High Court in Bhageeratha Engineering Ltd. v. State of Kerala [2025:Ker:337] examined the validity of contractual time limits that restrict a party's right to invoke arbitration. The case raised the fundamental question of whether a contractually imposed 28-day limitation for initiating arbitration could override statutory provisions governing limitation periods. The High Court's ruling reaffirmed that such restrictions are void under Section 28(b) of the Indian Contract Act, 1872, as they unlawfully curtail legal remedies. In this article, we navigate through the facts of the case and the findings rendered by the Kerala High Court.

Brief Facts

The dispute stemmed from four contracts awarded to Bhageeratha Engineering Ltd. for projects led by the Kerala State Transport pertaining to the periodic renewal of various roads. The contracts provided for a multi-tier dispute resolution mechanism where any disagreement on rates or payments was