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IN THE HIGH COURT OF JUDICATURE AT BOMBAY

O.O.C.J.

APPEAL NO.1002 OF 2002

IN

ARBITRATION PETITION NO.110 OF 2002

...

Oil & Natural Gas Corporation Ltd. ...Appellants

v/s.

Saw Pipes Ltd. ...Respondents

...

Mr.Gaurav Joshi with Mr.P. Shinde i/b M.Dhruva & Co.

for the Appellants.

Mr.E.P.Bharucha, Sr.Counsel with Mr.Vinay Bhate,

Ms.Rajni Divekar & Nandiniee Mayekar i/b Little & Co.

for the Respondents.

...

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CORAM: D.K.DESHMUKH &

J.H.BHATIA, JJ.

DATED: 31ST OCTOBER, 2007

P.C.:

1. By this Appeal the Appellants challenge the order

30-7-2002 passed by the learned single Judge of this

court in Arbitration Petition No.110 of 2002. That

petition was filed by the present Appellants under

Section 34 of the Arbitration & Conciliation Act,

1996 challenging the award made by the arbitral

tribunal dated 4th December, 2001. Admittedly there

was a contract entered into between the Appellants on

one hand and a consortium consisting of P.J.Pipes and

Vessels Ltd. and the Respondents-Saw Pipes Ltd. The

dispute arose out of the contract. Admittedly, there

was an arbitration clause. The arbitration clause

was invoked by letter dated 25th March, 1996.

Thereafter there was correspondence between the

parties. The letter invoking the arbitration clause

was kept under suspension. There were negotiations

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between the parties. Some of the claims between the

Appellants and the other member of the consortium

namely P.J.Pipes were settled. A notice invoking the

arbitration clause was revived by letter dated 30th

September, 1997.

2. Thereafter, the arbitral tribunal was

constituted. Before the arbitral tribunal several

objections were raised including that the invocation

of the arbitration clause is not within the period of

limitation. The arbitral tribunal overruled all the

objections and passed the award in favour of the

Respondents-Saw Pipes.

3. That award was challenged before the learned

single Judge. The learned single Judge dismissed the

petition. The present appeal is, therefore, directed

against the award and the order of the learned single

Judge.

4. The first point that was urged before us was that

the arbitration clause was invoked by notice dated

25th March, 1996. That notice was withdrawn

unconditionally by the consortium and the

ONGC-Appellants have agreed to hold negotiations and

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consider the claims. Thereafter, again a notice was

issued on 30th September, 1997. It is claimed that

the cause of action for invoking arbitration clause

accrued last in the month of April,1993, therefore,

the invocation of the arbitration clause by letter