HC Expounds: Issue of Limitation Act can be left on appointed Arbitrator [Read Judgment]

A single judge bench of the Justice Vipin Sanghi disposed of the matter in view of the settled position of law that issues of limitation can be left for adjudication by the Arbitral Tribunal and appointed the arbitrator to take a decision on issue of limitation.

Facts:

The case of the applicant is that the applicant entered into an Agreement with the respondent with the issuance of a Work Order No. 01 on 24.07.2009. The brief specification of the work given in the Work Order was “Widening / Improvement of Dharasu-Gangotri Road (NH-108) from Km 0.000 to Km. 13.000 (Net Length 13.000 Kms.)”. The date of handing over of the site was 27.07.2009, and the date of completion was 26.07.2011. The case of the applicant is that disputes arose between the parties in relation to the said work, and the applicant invoked the Arbitration Agreement on 30.12.2021.

The applicant claimed in the notice that the completion of the work was delayed and various extension of time letters were issued. The work was successfully completed on 31.10.2017, and the maintenance period of 12 months got over on 31.10.2018. The applicant claimed that the respondent had not cleared the applicant’s dues, and consequently, invoked the arbitration agreement contained in Clause 70 of the General Conditions of Contract, on 31.12.2021.

Observations of the Court

The court noticed that according to the applicant, the final bill was not prepared in accordance with the Agreement, and the applicant received the payment under protest. Counsel for the applicant, therefore, submits that the invocation of the Arbitral Agreement was within the period of limitation. The respondents have not opposed the application on any ground, much less on the ground of limitation. It is settled law that issues of limitation can be left for adjudication by the Arbitral Tribunal. Accordingly, they allowed the application, and appoint Mr. Justice G.S. Sistani, Retd. Judge, Delhi High Court (Mobile No. 9871300034), to act as the sole Arbitrator to adjudicate the claims and counter-claims of the parties arising out of the aforesaid Agreement between the parties. The Arbitral Tribunal shall also determine the issue of limitation, if raised.

Decision:        

The petition was disposed of in view of the settled position of law that dispute of limitation can be left to be solely adjudicated by the appointed arbitrator to which respondent also not contended in against.

Case: M/s Telecommunication Consultants India Limited vs Border Road Organization, Through its Officer Commanding

Citation: ARBITRATION APPLICATION NO. 55 OF 2022

Coram: Justice Vipin Sanghi

Dated: 11.11.2022

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