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2023 (5) TMI 852 - CALCUTTA HIGH COURTAppointment of a sole arbitrator to adjudicate the disputes which have arisen between the parties - disputes arose between the parties with regard to, among other causes, execution of the project and contractual obligations of the parties - whether the claims here are ex-facie time barred, and therefore, fall under the restrictive category of deadwood? HELD THAT:- It is a settle principle of law that the limitation period in a Section 11 application is governed by Article 137 of the Limitation Act, 1963 which provides for three years from the date when the right to apply first accrues. From the facts in hand, it is palpably evident that the cause of action first arose on March 18, 2013 when the project was kept on 'Hold' by the respondent. Subsequently, on May 16, 2015, a fresh cause of action arose when the respondent informed the petitioner about short closure of the contract. Post issuance of legal notice dated March 22, 2017 by the petitioner, the respondent called for meetings between the parties to sort out the issues. The said meetings were held in April 2017, and on perusal of the minutes of the meetings, I am of the view that the discussions between the parties were exhaustive wherein both the sides made certain specific commitments in relation to the pending work at site and bill payments. Therefore, even though the respondent had unilaterally short closed the contract, the resolution recorded in the said meetings indicated their intent to have the pending work completed with set timelines. The limitation period will not be operative against the petitioner from February 05, 2019 onwards, and hence, the present petition is well within time and not barred by limitation. Ultimately, the scope of judicial interference under section 11 finds its genesis in VIDYA DROLIA AND OTHERS VERSUS DURGA TRADING CORPORATION [2020 (12) TMI 1227 - SUPREME COURT], as extremely limited, and only in those cases, where no iota of doubt regarding a claim being ex-facie time-barred is present. If and when the Court is in doubt, it has to refer the matter to the arbitral tribunal for adjudication. Justice Sahidullah Munshi, Former Judge, Calcutta High Court, appointed as a sole arbitrator to arbitrate upon the disputes which have arisen between the parties - petition disposed off.
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