M/S ARIF AZIM CO. LTD. versus M/S APTECH LTD.

M/S ARIF AZIM CO. LTD. versus M/S APTECH LTD.

Article 137 of the Limitation Act, 1963 applies residually to petitions under Section 11(6) of the Arbitration and Conciliation Act, 1996; the limitation period of three years for a s.11(6) application begins only after a valid notice invoking arbitration has been received and there is a failure or refusal to appoint an arbitrator as per the agreed procedure; courts must employ a two-pronged test at the referral stage (whether the s.11(6) petition itself is time-barred and whether the claims are ex-facie time-barred/dead) and reject only manifestly dead claims on prima facie review — applying these principles the petition filed 19.04.2023 was within limitation and the claims were not...

Parties
Petitioner: M/S Arif Azim Co. Ltd.; Respondent: M/S Aptech Ltd.
Jurisdiction
India
Judgment Date
01 March 2024
Procedural Posture
Arbitration Petition No.29 of 2023 Under Section 11(6) of the Arbitration and Conciliation Act, 1996 / Judgment
Outcome
Petition allowed
Legal Topics
Section 11(6), Article 137, Accrual of Right to Apply, Commencement of Arbitral Proceedings (s.21), Jurisdiction Versus Admissibility, Time Barred/ex Facie Dead Claims
Arbitration Limitation Act Commercial Law Section 11(6) Article 137 Accrual of Right to Apply Commencement of Arbitral Proceedings (s.21) Jurisdiction Versus Admissibility +1 more

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Parties

M/S Arif Azim Co. Ltd.

Petitioner

M/S Aptech Ltd.

Respondent

Procedural Posture

Arbitration Petition No.29 of 2023 Under Section 11(6) of the Arbitration and Conciliation Act, 1996 / Judgment

Legal Issues

  1. 1 Whether the Limitation Act, 1963 (Article 137) applies to an application under Section 11(6) of the Arbitration and Conciliation Act, 1996
  2. 2 When does the right to apply under Section 11(6) accrue for limitation purposes
  3. 3 Whether the court may refuse to make a reference under Section 11 where claims are ex-facie time-barred

Ratio Decidendi

Article 137 of the Limitation Act, 1963 applies residually to petitions under Section 11(6) of the Arbitration and Conciliation Act, 1996; the limitation period of three years for a s.11(6) application begins only after a valid notice invoking arbitration has been received and there is a failure or refusal to appoint an arbitrator as per the agreed procedure; courts must employ a two-pronged test at the referral stage (whether the s.11(6) petition itself is time-barred and whether the claims are ex-facie time-barred/dead) and reject only manifestly dead claims on prima facie review — applying these principles the petition filed 19.04.2023 was within limitation and the claims were not...

Court Disposition

Petition allowed

Orders

  • Shri Justice Sanjay Kishan Kaul, Former Judge of the Supreme Court of India, appointed as sole arbitrator
  • Fees of the arbitrator and other modalities to be fixed in consultation with the parties