A fresh notice is required for initiating new arbitration proceedings if an arbitration award has been set aside.

JUDGMENT

This arbitration request is filed by a non banking financial institution for appointment of an Arbitrator to resolve the dispute between the petitioner and the respondents. This is a second round of litigation. An award was passed on 28.12.2018. The petitioner sought execution of the award by approaching the District Court, Thrissur. On 24.09.2024, the E.P was dismissed by the Third Additional District Judge, Thirssur, for the reason that the appointment of the Arbitrator was unilateral. Left with no other option the petitioner approached this Court in this arbitration request for appointment of an Arbitrator.

2. Notice was issued and the respondents have entered appearance through Counsel. The learned Counsel for the respondents filed counter affidavit and also an additional counter affidavit. The learned Counsel for the respondent submitted that the claims of the petitioner are hopelessly time barred and therefore no arbitration proceedings can be initiated at this point of time. She vehemently submitted that this arbitration request is only to be rejected as the claims are ex facie time barred. She relied on various judgments of the Honourable Supreme Court wherein the Honourable Apex Court has held that in cases where the claims are ex facie time barred, arbitration request can be rejected by the High Courts. The learned Counsel for the petitioner on the other hand submitted that the claims are not time barred and the periods spent for pursuing the arbitration proceedings and the execution proceedings are to be excluded. I do not propose to enter into the rival contentions in this regard. In M/s. Agro Indus Credits Limited v. Mangalan [2026 (1) KLT 1], I have held that when an arbitration award is set aside and a party proposes to initiate fresh arbitration proceedings, issuing a fresh notice is essential. Here in this case the execution court has held that the award is unenforceable. Under such circumstances also issuing a fresh notice for initiating arbitration proceedings is essential.

Therefore, following the law laid down in the judgment referred above, I close this arbitration request as premature. However, it is made clear that it will be open to the petitioner to issue a fresh notice and to approach this Court again. I also make it clear that I have not considered the merits of the contentions raised by the respondent on the question of limitation. All such contentions on merits are left open.

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