DHV BV versus TAHAL CONSULTING ENGG. LTD. & ORS.

DHV BV versus TAHAL CONSULTING ENGG. LTD. & ORS.

The arbitral procedure can be set in motion since an enforceable arbitration agreement subsists between the parties regarding the dispute relating to payment of tax as per clause 1.10; claim is not prima facie barred by limitation as the cause of action arose upon receipt of Income Tax notices, leading to a live dispute requiring settlement.

Parties
Petitioner: DHV Consultants BV; Respondent: Tahal Consulting Engineers Limited; Respondent: Water Resources Organisation, PWD, Government of Tamil Nadu (TNPWD)
Jurisdiction
India
Judgment Date
12 September 2007
Procedural Posture
Arbitration Petition / Order of Appointment of Arbitrator Under Section 11(6) of the Arbitration and Conciliation Act, 1996
Outcome
Petition allowed; Sole Arbitrator appointed under Section 11(6) of the Act.
Legal Topics
Appointment of Arbitrator, Existence of Arbitration Agreement, Limitation, Tax Liability Under Contract
Arbitration Appointment of Arbitrator Existence of Arbitration Agreement Limitation Tax Liability Under Contract

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Parties

DHV Consultants BV

Petitioner

Tahal Consulting Engineers Limited

Respondent

Water Resources Organisation, PWD, Government of Tamil Nadu (TNPWD)

Respondent

Procedural Posture

Arbitration Petition / Order of Appointment of Arbitrator Under Section 11(6) of the Arbitration and Conciliation Act, 1996

Legal Issues

  1. 1 Whether after completion of contract there is still an enforceable arbitration agreement between the parties
  2. 2 Whether the claim of consultant is stale and barred by limitation

Ratio Decidendi

The arbitral procedure can be set in motion since an enforceable arbitration agreement subsists between the parties regarding the dispute relating to payment of tax as per clause 1.10; claim is not prima facie barred by limitation as the cause of action arose upon receipt of Income Tax notices, leading to a live dispute requiring settlement.

Court Disposition

Petition allowed; Sole Arbitrator appointed under Section 11(6) of the Act.

Orders

  • Justice P.K. Balasubramanyan, former Judge of Supreme Court, appointed as Sole Arbitrator subject to his consent and terms he deems fit and proper.
  • Registry directed to communicate this order to the learned Arbitrator to enter upon the Reference and decide expeditiously.