Invalidity of contractual time-bars curtailing statutory limitation under Section 28 of the Contract Act

Contractual provisions that impose unduly brief time limits for referring an adjudicator's decision to arbitration, thereby seeking to render the decision final and unchallengeable upon expiry of such periods, violate the mandate of Section 28(b) of the Indian Contract Act, 1872. Any clause in an agreement that seeks to extinguish the rights of any party thereto, or discharges any party from liability in respect of any claim on the expiry of a specified period so as to restrict the party from enforcing its rights within statutory limitation periods, is void to that extent. Where a clause prescribes an abbreviated timeframe, such as twenty-eight days to refer an adjudicator's finding to arbitration on pain of finality, it cannot operate as an absolute legal bar against invoking arbitration if the claim is otherwise pursued within the governing statutory limitation period. (M/s Bhagheeratha Engineering Ltd. Vs State of Kerala | 2026 INSC 4)