9911796707
TMI Blog1998 (9) TMI 463X X X X Extracts X X X X X X X X Extracts X X X X ..... oubling of track between Telapur-Gullaguda and Gullaguda - Vikarabad Stations in the year 1988 and the applicant had completed the work in the same year. The letter of acceptance was issued by the respondents on 20-9-1990 and the agree- ment for the aforesaid work already done was entered into between the applicant and the respondents on 28-2-1991. The value of the work was Rs. 88,684. The applicant had submitted his bill dated 2-6-1991 for payment to the respondents. The applicant submitted a no-claim certifi- cate and thereafter, the final payment was made on 20-5-1994. The security deposit of Rs. 8,640 was released vide sanction letter dated 15-4-1994. The applicant had raised a dispute on 18-8-1994 and had asked the respondents to ref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 11 for adjudication of the dispute in the event of a difference between the parties to agreement. For invoking the provisions of section 11, an arbitrable dispute must be in existence. Section 43(1) of the Arbitration Act says that the Limitation Act, 1963 shall apply to arbitra- tions as it applies to proceedings in the Court, while sub-section (2) says that an arbitration shall be deemed to have been commenced on the date referred to under section 21. Section 21 lays down that unless and otherwise agreed by the parties, the arbitral proceedings in respect of any particular dispute commence on the date on which a request for the dispute to be referred to arbitrator is received by the respondents. 8. In the case on hand, it is an adm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contract to the contrary, cause of arbitration for the purpose of limitation shall be deemed to have accrued to the party, in respect of any such matter at the time when it should have accrued but for the contract. Cause of arbitration shall be deemed to have commenced when one party serves the notice on the other party requiring the appointment of an arbitrator. The question is when the cause of arbitration arises in the absence of issuance of a notice or omission to issue notice for long time after the contract was executed ? Arbitration implies to charter out timeouts commencement of arbitration availing the arbitral agreement, as soon as difference or dispute has arisen. Delay defeats justice and equity aids promptitude and resultant c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these claims, the Apex Court considered the contention of the learned counsel of Damodar Das that the State of Orissa had extended the time for execution of the works till 1977 and admittedly had completed the execution of the work of the second contract on 30-12-1977 but had abandoned the work for the third contract. Under these circumstances, the Apex Court held that it cannot be laid that there would be no dispute as to whether the claims are barred by limitation and observed that it would be difficult to decide whether the claims are barred by limitation and that it would be a matter for decision by arbitrator. 14. On the strength of the above observations made in the case of State of Orissa ( Supra ) that the question of limitat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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