An acknowledgment in writing must be given before the expiration of the prescribed period of limitation to be valid and enforceable.

ORDER

Dr. S. Muralidhar, CJ. - This is a petition under Section 11 (6) of the Arbitration and Conciliation Act, 1996 (the 'Act') seeking the appointment of an Arbitrator to adjudicate the disputes between the Petitioner and the Opposite Party-National Projects Construction Corporation Ltd. (NPCCL), arising from a work order dated 25th November, 2005 for the work of "Nergundi-Cuttack-Paradeep doubling Construction of washable aprons, Island platform, Longitudinal drain and other ancillary works at Cuttack station yard."

2. The facts in brief are that the Petitioner was assigned the aforementioned work in terms of the work order dated 25th November, 2005 with the scheduled date of commencement as 16th May, 2005 and the date of completion as 15th April, 2006. The work order contained an arbitration clause which reads as under:

"16. Except where otherwise provided in the contract all question and disputes relating to the meaning of the specifications, designs, drawings and instructions before mentioned and as to the quality of workmanship or materials used on the work or as to any other question, claim, right matter or thing whatsoever, in any way arising out off or relating to the contract, designs, drawings specifications estimate instructions, orders or those conditions or otherwise concerning the works, for the executions or failure to execute the same, whether arising during the progress of the work or after the complete or abandonment thereof shall be referred to the sole Arbitration of the persons appointed by the Managing Director of the National Projects Construction Corporation Limited, acting as such at the time of dispute. It will be no objection to any such appointment that the Arbitrator, so appointed is and that in the course of his duties as Corporation Officer he had expressed views in all/or any of the matters in dispute or difference. The Arbitrator to whom the matter is originally referred being transferred or vacating of his office being unable to act for any reason, the Managing Director shall appoint another person to act as arbitrator in accordance with the terms of the contract. Such person shall be entitled to proceed with the reference from the stage at which it was left by his predecessor. It is also a terms of this contract that no person other than a person appointed by the Managing Director as aforesaid should act as arbitrator and if for any reason, that is not possible, the matter is not to be referred to arbitrator at all. The arbitrator may from time to time with the consent of the parties enlarge the time, for making and publishing the award.

Subject as aforesaid the provisions of the Arbitration Act, 1940 or any statutory modification or reenactment thereof and the rules made there under and for the time proceeding under this clause."

3. According to the Petitioner, it completed the work by 28th February 2007. It claims that this fact has been acknowledged by NPCCL, as well as by East Coast Railway (ECR), which engaged NPCCL for the work.

4. In para-5 of the petition, a vague averment is made as regards the steps taken by the Petitioner for recovery of its dues from NPCCL. It is stated that ECR had initiated certain recovery from NPCCL for some other work, as a result of which, NPCCL's bills and securities "remained stuck" with ECR. Then, it is averred as under:

"xxx. Though the petitioner approached the Opp. Party on various occasions for the said payments, the petitioner was thwarted with the impression that, as the Opp. Party's payment has been withheld by its employer, hence the payment of the Petitioner will only be released pursuant to such payment of dues of the Opp. Party. As it was condition precedent that only upon receipt of the dues of the Opp. Party, the dues of the petitioner shall be released, the petitioner had no option than to await the result of the said arbitration proceeding.xxx"

5. The Petitioner then avers in para-6 about becoming aware of the fact that in an arbitration between