Interim relief must await ruling on limitation issue

In a recent judgment, Bombay High Court has, after a thorough interpretation of section 9A of the Code of Civil Procedure, 1908, (inserted by the Maharashtra Amendment Act, 1977), held that a party would be entitled to raise a preliminary issue of jurisdiction under section 9A of the code on the ground that a suit is barred by limitation, notwithstanding that the entire suit is not barred by the law of limitation.

In 2008, a suit was filed by Nusli Neville Wadia (NNW) against Ferani Hotels and others, seeking a declaration that a development agreement entered into between NNW and Ferani stood validly terminated.

A single judge disposed of a notice of motion for interim relief in the suit in 2010, refusing to grant any such relief. The judge further ordered that the preliminary issue of limitation raised by Ferani under section 9A be framed after disposal of the notice of motion.

Cross appeals were preferred by Ferani and NNW against the order.

Kanika Sharma is an integral part of the litigation team at Bharucha & Partners.