HC expounds that issue of limitation must be decided by the arbitral tribunal itself as it is a mixed question of fact and law, Read Order

The Delhi High Court while deciding on an application filed for the appointment of a sole Arbitrator opined that the claims by the Petitioner were not ex-facie time barred. Further, it was enunciated that the issue of limitation is a mixed question of fact and law that has to be adjudicated upon by the Arbitral Tribunal itself. 

Brief Facts:

The dispute between the parties arose from a lease deed with an arbitration clause. The present petition has been filed for the appointment of a sole Arbitrator. 

Contentions of the Petitioner:

It was asserted that before invoking Arbitration, a civil suit was preferred by the Petitioner pursuant to which an application was filed by the Respondent under Section 8 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the “A&C Act”). The application was allowed; hence, Petitioner was directed to initiate arbitration as per law. 

It was argued that the relationship between the parties continued to exist by virtue of the lease deed. Therefore, the claims are not barred by limitation. 

Contentions of the Respondent:

It was contended that the lease deed expired and hence, the claims of the Petitioner are not barred by limitation. 

Observations of the Court:

The High Court opined that the claims by the Petitioner were not ex-facie time-barred. Further, the issue of limitation is a mixed question of fact and law that has to be adjudicated upon by the Arbitral Tribunal itself. 

Noting that the arbitration agreement existed, the Court thought it fit to constitute a tribunal and appointed an Arbitrator for adjudication of disputes. 

The decision of the Court:

Accordingly, the petition was disposed of. 

Case Title: Ashok Kumar Aneja v. M/s Alaknanda Vaults (P) LTD 

Coram: Hon’ble Mr. Justice Sachin Datta 

Case No: ARB.P. 855/2022

Advocates for Petitioner: Advs. Mr. Praveen Kumar Jain, Mr. Girish Kohli, Ms. Rashmi Kumari, Ms. Shalini Jha, Mr. Binay Kumar Joshi 

Advocates for Respondent: Advs. Mr. Anshul Narayan, Mr. Sourabh Pahwa 

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