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K. R. SHRIRAM, RAJESH S. PATIL
R. N. Ghanekar & Co. – Appellant
Versus
Municipal Corporation of Greater Mumbai – Respondent
JUDGMENT :
S.K. SHRIRAM, J.
Both Appeals arise out of a common order dated 11th April 2005 passed by the learned Single Judge under Section 34 of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”).
2. Appellant as well as Respondent had challenged the same Award dated 30th May 2003 passed by learned sole arbitrator directing Municipal Corporation of Greater Mumbai (Respondent) to pay certain amounts to the contractor M/s.R.N. Ghanekar & Co. (Appellant). Respondent's grievance against the Award was that the claim ought to have been set aside on the preliminary point that the reference of the dispute to the Arbitration was barred by law of limitation. It was Respondent’s case that the amounts that Appellant had claimed was on account of overheads from October 1994 till 25th September 1996 and the cause of action arose when Appellant became entitled to claim those amounts. According to counsel for Respondent the cause of action for going to arbitration would arise on the date on which, and if there being no arbitration clause between the parties, the cause of action for institution of suit could have been arisen.
3. It was Appellant's case in the Petition under Section 34 of A
The main legal point established in the judgment is the application of the Limitation Act, 1963 to arbitration proceedings and the significance of acknowledging claims to extend the period of limitat....
The appointment of an Arbitrator should proceed if there is doubt about the subsistence of the disputes, and objections regarding claims should be left to be determined by the Arbitrator.
An application for arbitration is barred by limitation if filed beyond the three-year period stipulated, starting from the date the cause of action arose as determined by prior communications.
(1) Appointment of Arbitrator – Limitation – There is a fine distinction between plea that claims raised are barred by limitation and plea that application for appointment of Arbitrator is barred by ....
Claims withdrawn do not reset the limitation period; the original cause of action's date governs the timeliness of arbitration requests.
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