While it is correct that the limitation for filing an application under Section 11 of the Arbitration Act would begin to run from the date when there is failure to appoint Arbitrator but that would not mean that merely issuance of a notice for invoking arbitration in stale claims would make the limitation start afresh – Daljit Singh & Brothers Contractor Vs. Chief Engineer, Punjab and Another – Punjab & Haryana High Court
October 4, 2023
In this case the contract was closed in 30.6.2008 and the petitioner served a legal notice dated 31.1.2019 invoking arbitration.
Hon’ble High Court referred the judgment in Bharat Sanchar Nigam Ltd. & Anr. (2021) ibclaw.in 41 SC and held that:
(i) The law settled in the aforesaid judgment leaves no manner of doubt that mere issuance of notice or any correspondence would not revive a claim, which is otherwise hopelessely time barred.
(ii) In the present case, there is a delay of about a decade on part of the petitioner in invoking arbitration. There is no reason justifying the said delay.
(iii) Though, normally in case of a question which is disputed which has some chequered or disputed facts, this Court would leave it to the Arbitrator to decide on issue of limitation but the present case is a case of undisputed facts where admittedly the accounts were closed in the year 2008 and no steps thereafter were taken by the petitioner for a decade and as such, the instant case would fall in one of those rare and exceptional cases justifying dismissal at the very outset.
