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DELHI HIGH COURT
VIBHU BAKHRU
Sagar Constructions – Appellant
Versus
Govt. of NCT of Delhi – Respondent
JUDGMENT
[Hearing Held Through Video conferencing]
Vibhu Bakhru, J. (Oral)--The petitioner has filed the present petition under Section 11 of the Arbitration & Conciliation Act, 1996 (hereafter the `A&C Act'), inter alia, praying that an Arbitrator be appointed to adjudicate the disputes, which have arisen between the parties.
2. By a letter dated 10.11.2014, the respondent awarded the work of construction of twelve numbers SPS type (D/S) class rooms with toilet block and staircase at Government Co-Ed. School B-4, Paschim Vihar, New Delhi, to the petitioner. The said work was to be completed within a period of four months from the date of the Letter of Acceptance (LoA), that is, on or before 19.03.2015.
3. The petitioner completed the said works on 16.03.2015.
4. The petitioner claims that the respondent had failed and neglected to release the payment due in respect of the aforesaid Contract. In the said context, the petitioner issued a letter dated 23.02.2016 requesting the concerned Superintendent Engineer to resolve the disputes and/or take further steps in accordance with Clause 25 of the General Conditions of Contract (GCC) as applicable to the Contract between the par
The court ruled that claims regarding limitation and the validity of invoking arbitration must be determined by the Arbitral Tribunal, reaffirming the applicability of Article 137 of the Limitation A....
Contractual provisions cannot extinguish rights to invoke arbitration beyond lawful limitations set by statute, upholding that timelines for claims start from when notice to arbitrate is issued.
The impact of the Covid-19 pandemic on the limitation period for invoking arbitration under the Arbitration and Conciliation Act, 1996.
An arbitration agreement remains valid and enforceable despite procedural limitations on arbitrator appointment, ensuring disputes are addressed effectively.
Arbitration - Appointment of Arbitrator - Court is not required to examine any other contentious issues regarding the disputes between the parties at the stage of referring the parties to arbitration....
The main legal point established in the judgment is the strict construction of arbitration clauses and the adherence to the terms of the arbitration agreement by the parties.
The Court emphasized the principle of 'when in doubt, do refer' and left the issues of limitation and compliance with the procedure for DRC under Clause 25 for consideration by the arbitrator.
Arbitration requests must be filed within three years of the cause of action; failure to act in time bars subsequent petitions.
An application under Section 11 for appointment of an arbitrator is time-barred if filed after three years from the refusal to appoint, with delays not justified.
The main legal point established in the judgment is that failure to follow the prescribed procedure and a claim being hopelessly barred by time can lead to the dismissal of a petition seeking the con....
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