Limitation Period Of 3 Yrs For Filing Application U/S 11 Arbitration Act Commences From Elapse Of 30 Days From Demand Of Arbitration: P&H High Court
Mere correspondence between parties by way of letters/reminders subsequent to this date would not extend the time of limitation.
The Punjab and Haryana High Court recently dismissed an application under Section 11(6) of Arbitration and Conciliation Act, 1996 seeking appointment of an arbitrator filed by the applicant in 2017, on the ground of it being barred by limitation. The court noted that the dispute between the parties arose in 2007, after which the applicant sent a legal notice to the respondents...
The Punjab and Haryana High Court recently dismissed an application under Section 11(6) of Arbitration and Conciliation Act, 1996 seeking appointment of an arbitrator filed by the applicant in 2017, on the ground of it being barred by limitation.
The court noted that the dispute between the parties arose in 2007, after which the applicant sent a legal notice to the respondents for the appointment of an arbitrator in 2011 to which respondents replied asking the applicant to deposit the necessary 10% of the claim amount failure of which will make it responsible for the delay.
Thereafter, several correspondences took place between the parties and the respondents continued to reiterate their stand on the deposit of 10% of the claim amount which was admittedly not deposited by the applicant. Ultimately, the applicant filed this application under Section 11 of the Act in 2017.
The Bench comprising Chief Justice Ravi Shankar Jha referred to Secunderabad Cantonment Board Vs M/s B. Ramachandraiah & Sons, 2021 (5) SCC 705 where it was held that period of limitation of 3 years for filing a S. 11 application starts running from the elapse of 30 days from the date demand for arbitration is made.
In view of the aforesaid law laid down by the Supreme Court, it is evident that in the present case the dispute between the parties arose in the year 2007, whereafter the applicant for the first time sent a legal notice to the respondents for the appointment of an arbitrator on 11.04.2011, whereupon the respondents responded by their letter dated 28.04.2011 asking the applicant to deposit the necessary 10% of the claim amount failing which it would be responsible for the delay……….
The bench further added that the instant application should be dismissed because the limitation under Section 11 of the Act started running from 2011 which makes the instant application filed in 2017 delayed and barred by limitation.
………and, therefore, deserves to be dismissed, as evidently, the limitation as far as filing of the application under Section 11 of the Act is concerned would start running from that date and, therefore, the present application filed by the applicant before this Court on 28.04.2017 is apparently delayed and barred by limitation, as it has been filed well beyond three years, in view of the law laid down by the Supreme Court in Secunderabad Cantonment Board's as well as Bharat Sanchar Nigam Ltd.'s cases (supra).
Accordingly, the court dismissed the instant application.
Case Title: M/s Garg Construction Company Versus State of Haryana and others
Citation: 2022 LiveLaw (PH) 189