NDLI: Secunderabad Cantonment Board Vs. M/s B. Ramachandraiah & Sons

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Arbitration and Conciliation Act 1996 – s.11
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case(s) Referred	Referred Case 0
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Arbitration and Conciliation Act, 1996 – s.11 – Limitation Act, 1963 – s. 9 and Art.137 – Appellant floated a notice inviting tender for a term of annual contract – Three agreements were entered into with the respondent – Agreements had arbitration clause – Work orders were issued – Thereafter, final contract certificates were issued by the appellant and final payment was received by the respondent of the works in question – Respondent then started making demands for reimbursement on account of variation in prices of material, labour and fuel – By letter dated 07.11.2006, respondent requested for appointment of arbitrator – Respondent issued another letter dated 13.01.2007 and stated that it had no option but to rescind contract and have an arbitrator appointed within 30 days – It is not disputed that 30 day period was over by 12.02.2007, however, respondent kept on writing letters in 2007-2009, reiterating its claim – Finally, respondent issued a legal notice dated 30.01.2010 and ‘clarification notice’ dated 20.03.2010 – Appellant by letter dated 10.11.2010, rejected the claim of reimbursement and stated that they have made final payments towards the work order – On 06.11.2013, the respondent filed applications u/s.11 of the Act – The Single Judge of the High Court allowed the application and an arbitrator was appointed – On appeal, held: It is clear that demand for arbitration was made by letter dated 07.11.2006 – Thereafter, another letter dated 13.01.2007 informed the appellant that appointment would have to be made within 30 days – The time begin to run on and from 12.02.2007 – Once the time started running, any final rejection by the appellant (letter dated 10.11.2010) would not give any fresh start to a limitation period which was already running, following the mandate of s. 9 of the Limitation Act – This being the case, the High Court was clearly in error in stating that since applications were filed on 06.11.2013, they were within the limitation period of three years starting from 10.11.2010 – Even otherwise, the claim of the respondent was also ex facie time barred – Thus, judgment of the High Court is set aside
Judge	Hon'ble Mr. Justice R.F. Nariman
Neutral Citation	2021 INSC 186
Petitioner	Secunderabad Cantonment Board
Respondent	M/s B. Ramachandraiah & Sons
SCR	[2021] 3 S.C.R. 68
Judgement Date	2021-03-15
Case Number	900-902

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