M/S. EMM ENN ASSOCIATES versus COMMANDER WORKS ENGINEER & ORS.

M/S. EMM ENN ASSOCIATES versus COMMANDER WORKS ENGINEER & ORS.

In cases where disputed claims are raised after three but within five years of work completion and there is evidence that payments were only for undisputed amounts, the matter should be left to the arbitral tribunal to decide limitation and whether the claim survives. The Chief Justice should reject an application under s.11 only if the claim is patently dead and time-barred without need for detailed consideration of evidence.

Parties
Appellant: M/S. EMM ENN ASSOCIATES; Respondent: Commander Works Engineer & Ors.
Jurisdiction
India
Judgment Date
29 June 2016
Procedural Posture
Civil Appeal / Appeal From High Court Order Denying Arbitration; Supreme Court Decision on Appointment of Arbitrator
Outcome
Appeals allowed; High Court order set aside; Applications under s.11 allowed
Legal Topics
Appointment of Arbitrator Under S.11, Limitation and 'live'/'dead' Claims, Work Contract Disputes
Arbitration Appointment of Arbitrator Under S.11 Limitation and 'live'/'dead' Claims Work Contract Disputes

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Parties

M/S. EMM ENN ASSOCIATES

Appellant

Commander Works Engineer & Ors.

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Order Denying Arbitration; Supreme Court Decision on Appointment of Arbitrator

Legal Issues

  1. 1 Whether the Chief Justice can adjudicate if the claim is live or dead while deciding an application under s.11 of Arbitration Act
  2. 2 Whether the contractor's claims, raised after two years from final bill payment, are time-barred or require arbitral adjudication

Ratio Decidendi

In cases where disputed claims are raised after three but within five years of work completion and there is evidence that payments were only for undisputed amounts, the matter should be left to the arbitral tribunal to decide limitation and whether the claim survives. The Chief Justice should reject an application under s.11 only if the claim is patently dead and time-barred without need for detailed consideration of evidence.

Court Disposition

Appeals allowed; High Court order set aside; Applications under s.11 allowed

Orders

  • Case remitted to Designated Judge of High Court for appointment of arbitrator to adjudicate disputes
  • Appointment of arbitrator to be done with consent of parties or by Court's discretion within one month from appearance