PUNJAB STATE & ORS. versus DINA NATH

PUNJAB STATE & ORS. versus DINA NATH

Clause 4 of the Work Order is an arbitration agreement, even without explicit use of the words 'arbitration' or 'arbitrator', since the clause provides that any dispute is to be referred to the Superintending Engineer, whose decision shall be final and binding. The application under Section 20 for appointment of an arbitrator was filed within the limitation period after effective service of demand notice, hence is not barred by limitation.

Parties
Appellant: Punjab State & Ors.; Respondent: Dina Nath
Jurisdiction
India
Judgment Date
14 May 2007
Procedural Posture
Civil Appeal / Supreme Court Appellate Judgment
Outcome
Appeals dismissed
Legal Topics
Arbitration Agreement, Appointment of Arbitrator, Limitation Period Under Article 137 of Limitation Act

Case Brief

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Parties

Punjab State & Ors.

Appellant

Dina Nath

Respondent

Procedural Posture

Civil Appeal / Supreme Court Appellate Judgment

  1. 1 Whether Clause 4 of the Work Order constitutes an arbitration agreement under Section 2(a) of the Arbitration Act, 1940
  2. 2 Whether the application for appointment of an arbitrator is barred by limitation under Article 137 of the Limitation Act, 1963

Ratio Decidendi

Clause 4 of the Work Order is an arbitration agreement, even without explicit use of the words 'arbitration' or 'arbitrator', since the clause provides that any dispute is to be referred to the Superintending Engineer, whose decision shall be final and binding. The application under Section 20 for appointment of an arbitrator was filed within the limitation period after effective service of demand notice, hence is not barred by limitation.

Court Disposition

Appeals dismissed

Orders

  • Clause 4 of the Work Order construed as an arbitration agreement; reference to arbitration confirmed; application for appointment of arbitrator within limitation period upheld; no order as to costs.