The main legal point established in the judgment is that the COVID-19 pandemic led to an extension of the limitation period, impacting the applicability of the limitation period in arbitration cases.

JUDGMENT :

1. Heard Mr. P.R. Sikka, Advocate along with Mr. Nitin Chopra, the learned counsel for applicant and Mr. Ashish Agrawal, the learned counsel for respondents.

2. Perused the record.

3. This arbitration application under Section 11 of the Arbitration and Conciliation Act, 1996 has been filed by applicant for appointment of an arbitrator to resolve the dispute between the parties.

4. Record shows that applicant M/S Sophisticated Industrial Materials Analytic Labs (P) Ltd. (Sima Labs. Pvt. Ltd. A-37, Mayapuri Industrial Area, Phase-II, New Delhi is a Company duly incorporated under the Companies Act. The Company was initially known as Sima Labs Pvt. Ltd, The company has its registered office at A-37, Mayapuri Industrial Area, Phase-II, New Delhi.

5. M/S U.P. State Industrial Development Authority was previously known as U.P. State Industrial Development Corporation Ltd. (hereinafter referred to as the UPSIDC).

6. Tenders were invited by UPSIDC for construction of waste water treatment plant of 6 MLD capacity at Surajpur (Housing), District Gautam Buddh Nagar, U.P. In response to the said invitation/tender notice, the applicant submitted his tender, which was accepted by UPSIDC. Accordingly, contract bond No. 07/CE/2009/2010 dated 04.05.2009 and Job No. CD-II (334) dated 26.02.2009 was awarded to the petitioner for amounting to Rs.13,90,30,000/- (Rs. Thirteen Crore Ninety Lac Thirty Thousand Only).

7. It is the case of the applicant that work was completed within time and thereafter the plant was handed over to the Corporation. In view of above, the amount payable under the contract was paid except the security retention amount.

8. Subsequently, applicant prayed for the release of the security retention amount i.e. Rs.9,00,000/-(Nine Lac Only), which was deducted by the respondent till handing over of the plant. Admittedly the plant has been handed over by the applicant to the respondent UPSIDC as is evident from the letter dated 03.03.2015 (Annexure-8 to the petition). However, despite repeated request, the security retention amount was not released. The applicant claims that a letter dated 25.09.2018 was written by Executive Engineer recommending therein that the security retention amount of the applicant be released. According to the applicant, this was followed by the final letter dated 31.10.2018 sent by Executive Engineer, UPSIDC recommending therein that the security retention amount and another be immediately released. According to the applicant, inspite of aforesaid, the security retention amount has not been paid.

9. Faced with aforesaid situation, applicant invoked the Arbitration Clause contained in Clause 31 of Section 2 of the General Conditions of Contract. For Ready reference, the same is reproduced herein-under :

"If any question, difference or objection whatsoever shall arise in any way connected with or arise in any way connected with or arising out of his instrument or the meaning or operation of any part thereof or the rights, duties or liabilities or either party that save in so far as the decision of any such matter including whether its decision has been otherwise provided for and/or whether it has been finally decided accordingly, or whether the contract should be terminated or has been rightly terminated and as regards the right and obligations or the parties as th result of such termination shall be referred for arbitration to Managing Director UPSIDC, acting as such of the time of reference within 180 days or 6 months from the payment of final bill or written notice issued to the contractor that his bill is ready for payment and his decision shall be final and binding and where the matter involves a claim for or the payment or recovery of deduction of money, only the amount, if any awarded in such arbitration shall be recoverable in respect of the matter so referred if the matter is not referred to arbitration within the specified period, all the rights and claims under the contract shall be deemed to h