Supreme Court rules that ongoing settlement talks do not extend limitation periods for arbitration

The Supreme Court addressed the legal implications of ongoing discussions, holding that mere negotiations cannot extend the limitation period for filing arbitration claims. Once the cause of action has crystallised, subsequent settlement talks do not toll the statutory limitation clock.

This interpretation prevents stale claims from being litigated under the guise of prolonged negotiations, preserving legal certainty in commercial contracts. Parties cannot rely on informal dialogue to bypass strict statutory timeframes for invoking arbitration.

Commercial entities must monitor limitation triggers closely and initiate formal arbitration proceedings within statutory windows rather than relying on pending settlement discussions. Legal advisors must review existing contract disputes to ensure claims are filed before limitation periods expire.