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2025 Supreme(Online)(J&K) 1392

JAMMU AND KASHMIR AND LADAKH HIGH COURT
Tashi Rabstan, C. J.
Mir Sons Constructions Pvt. Ltd. (M/s.) Srinagar v. Union Territory of J and K
CW No.48/2023



Advocates:
For the Appellants/Petitioners: Not provided
For the Respondents: Not provided

Arbitration requests must be filed within three years of the cause of action; failure to act in time bars subsequent petitions.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 11(6) - Limitation Act, 1963 - The petitioner sought the appointment of an arbitrator following delays in the proceedings and failure of the respondent to provide necessary documents. The petition was filed more than twenty-two years after the initial request for arbitration, thereby rendering it time-barred. (Para 21)

(B) Arbitration - Limitation Period - The court held that the Limitation Act applies to arbitration and the period begins from the request for arbitration, not from subsequent communications. The petition was barred by limitation as it was filed after the expiration of the three-year limit from the date of the request. (Paras 18-21)

Facts of the case:
The petitioner, after winning a contract and facing delays in project execution due to non-provision of essential drawings by the respondents, invoked arbitration, but failed to act for over twenty years following initial communications.

Findings of Court:
The delay in filing the petition indicated a lack of urgency and rendered the request for arbitration time-barred as per legal standards.

Issues: The court considered whether the petition was ex-facie barred by limitation.

Ratio Decidendi: The right to apply for appointment of an arbitrator must be exercised within the limitation period, which was exceeded in this case. Existing legal frameworks concerning arbitration and limitation were applied.

Result: The petition is dismissed as time-barred.

Table of Content
1. petitioner sought arbitrator appointment after contract disputes. (Para 1 , 2 , 3 , 4)
2. arguments regarding maintainability and limitation of the petition. (Para 7 , 8 , 9)
3. court observations on the timeline and events leading to the case. (Para 10 , 11 , 12 , 13 , 14 , 15)
4. court decision regarding the limitation period. (Para 20 , 21)
5. final conclusion of the court's decision on the petition. (Para 24 , 25)

1. The instant petition has been filed by the petitioner seeking appointment of an arbitrator by invoking S.11(6) of the Arbitration and Conciliation Act, 1996 (for short the 'Act').

2. It is averred in the petition that the petitioner being a Private Ltd. Company duly incorporated under the Indian Companies Act of 1956, after having competed in the tendering process initiated by the respondents, was allotted a contract, Construction of Additional Office Accommodation at Old Secretariat Srinagar, vide allotment order No.15612-16 dated 26.11.1992. After allotment of the contract in favour of the petitioner, it is stated that the petitioner complied with the terms and conditions of the allotment order, submitted the bank guarantee and also dumped material and machinery on spot for execution of the work. It is stated that the respondents failed to provide the drawings required by them to be provided for completion of the work within three years and they also failed to release the amount of Rs.20.00 lacs as Mobilization Advance in favour of the petitioner. It is further averred that after a period of four years, on 08.05.1996, the respondents provided the drawing of construction of Layout and Raft of Bock "C" and the said work was executed on spot by the petitioner. However, the approved drawings of the balance works, despite repeated requests, were not provided, resulting into huge losses to the petitioner.

3. It is further pleaded in the petition that despite failure on the part of the respondents to provide the approved drawings, they sought encashment of the Bank Guarantee and, thus, the petitioner was constrained to approach the Court of Principal District Judge, Srinagar, under S.9 of the Act seeking interim protection and the said application is stated to have been dismissed vide order dated 31.03.2004. Against the order dated 31.03.2004, the petitioner filed a Statutory Appeal before this Court being CIA No.48/2004 and the said appeal was also dismissed vide order dated 13.08.2018. Against the order of dismissal dated 13.08.2018 passed in CIA No.48/2004, the petitioner has filed a review petition being RPC No.09/2018 and the same is stated to be pending before this Court.

4. It is further claimed by the petitioner that he has executed the part of the work allotted to him to the extent approved drawings were provided to him and in so far as the rest of the work is concerned, the same could not be executed because of non - furnishing of the approved drawings. It is also stated that the respondents have also failed to release the Mobilization Advance of Rs.20.00 lacs as also the bills submitted with regard to the execution of the part of the work and, as such, dispute is claimed to have arisen between the parties which is required to be resolved through arbitration. It is further stated that in view of the aforesaid given facts, the petitioner invoked clause 54 of the Agreement containing the Arbitration Clause and served a notice upon the respondents seeking appointment of an arbitrator in the matter. The petitioner has further stated that despite service of notice, the respondents have not acted in the matter and they failed to appoint an arbitrator in the matter, as such, the indulgence of this Court is sought in terms of S.11(6) of the Act seeking appointment of an arbitrator.

5. The present petition came to be filed before this Court on 12.05.2023 and on coming up before the Court, notices were directed to be issued in the matter vide order dated 19.05.2023. The respondents through their counse

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