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2001 Supreme(Jhk) 58

Jharkhand High Court
M.Y.Eqbal, J.
Ganesh Chandra Dey - Appellant
Versus
State Of Bihar - Respondent
REQUEST CASE 20 Of 1999
Decided On : 25 January, 2001

Headnote:Arbitration and Conciliation Act, 1996—Section 11 r/w Section 137 of Limitation Act, 1963— Reference of dispute to Arbitrator—Limitation—Reference has to be made within 3 years from date of cause of action—Reference made after lapse of 12 years from accrual of cause of action is barred by limitation. (Paras 5 and 8)

ORDER

M.Y. Eqbal, J.

1. This application has been filed under Section 11 of the Arbitration and Conciliation Act making a prayer for appointment of independent arbitrator for reference of dispute for adjudication.

2. The petitioners case is that he was awarded a contract by the Zila Parishad, Singhbhum West being agreement No. F2-15 of 1985-86 for construction of canteen, press and shops at Zila Parishad Campus. As per the agreement the date of the commencement of the work was 19.8.1985 and the date of completion was 19.8.1986. The petitioner said to have completed the work by 15.4.1987 and handed over the same to the respondents. It is stated that in course of execution of work payments were made to the petitioner through accounts bill from time to time after the work done by the petitioner was measured by Engineer Incharge and Measurements were entered in M.B. No. 452 and 526. It is stated that till completion of the work under the agreement, the petitioner was paid a sum of Rs. 14,14,254.50 but after the final measurement of the work done by the petitioner, further dues have not been paid. The petitioner, thereafter, had been requesting the Zila Parishad and all concerned of the Department for finalisation of the work by making payment of his legitimate dues but nothing was done. instead a sum of Rs. 70,189/- was deducted by the respondents towards security deposit. The petitioners case is that on account of non-payment of the dues a dispute has arisen and the same is still subsisting as the contract has neither been terminated nor there has been final settlement of the account. The petitioner accordingly gave notice through his lawyer on 18.1.1999 invoking the arbitration clause and thereafter the instant application has been filed.

3. A counter affidavit has been filed by the respondents stating, inter alia, that the claim is hopelessly barred by limitation inasmuch as the work was executed in 1989 and this application has been filed in 1999. It is stated that after completion of the work, the bill was finally prepared and payment had been made in 1992. The respondents further case is that the final measurement was recorded on 18.12.1992 in the measurement book which was acknowledged as correct by the petitioner, by putting his signature. Accordingly, as per measurement, payments have been made.

4. I have heard Mr. R.S. Mazumdar, learned counsel for the petitioner and Mrs. Ritu Kumar, learned counsel for the respondents.

5. After hearing the learned counsel appearing for the parties, the only question that falls for consideration is whether the instant application filed by the petitioner is barred by limitation. It is well settled that reference of dispute to arbitration must be sought within three years from the date when the cause of action arose. In the light of settled principles of law, I shall now see the pleadings of the petitioner to find out as to whether he was invoked the arbitration clause within three years from the date when the cause of action arose. Admittedly, the agreement was entered into in 1985 and under the said agreement the date of commencement and the date of completion of the work was 19.8.1985 and 19.8.1986, respectively. It is the case of the petitioner that the work was com- pleted and the building with all fittings was handed over on 15.4.1987. The petitioners further case is that in course of execution of the work payments were made through account bill from time to time and after completion of the work, the petitioner was paid a total sum of Rs. 14,14,254.50. For better appreciation paragraphs 6, 7 and 8 of the application are reproduced hereinbelow :--

"6. That the petitioner states that the petitioner has completed the entire work as stated above by 15.4.1987 and me building with alf fittings as directed by the Engineers in charge of the work was handed over on 15.4.1987. Thereafter the aforesaid newly constructed building was inaugurated by the then Chief Minister of Bihar.

"7. That the petition







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