Amendments in Indian Contract Act

Section 28(b) of the Indian Contract Act, 1872, inserted via the Indian Contract
(Amendment) Act, 1997, states that: No agreement can extinguish the rights of any party on
the expiry of a specified period. No agreement can discharge any party from any liability on
the expiry of a specified period.
Exceptions to Section 28
Section 28 of the Indian Contract Act, 1872 is not absolute. It has three exceptions. 
The first exception states that associate degree agreement should refer all disputes to
arbitration which will arise between the parties won't be void. Further, a mere arbitration
award are recoverable within the disputes referred. The second clause of Exception one was
repealed by the particular Relief Act, 1877.

The second exception states that associate degree agreement to talk over with queries that

arose before the insertion of the clause to arbitration between the parties won't be void.

The third exception states that a bank’s or monetary institution’s guarantee agreement with a
provision to extinguish the rights of any party or discharge any party from any liability upon
the expiration of a such amount (>1 year) from the date of occurrence/non-occurrence of
a such event won't be void. Exception three was inserted via The Banking Laws
(Amendment) Act, 2012 in 2013 on the recommendations of the Indian Banks’ Association.
It functioned as a redress mechanism for the banks post