2025 (5) TMI 470 - HC - GST

Appointment of arbitrators - time limitation - notice dated 04.10.2023 for appointment of an arbitrator has been submitted for the first time by the applicant while the instant proceedings have been filed on 30.01.2024 beyond a period of three years for initiation of proceedings for appointment of an arbitrator - HELD THAT - The applicant prays for some time to refer to the judgment of the Apex Court in the case of Prakash Corporates Vs. Dee Vee Projects Limited 2022 (2) TMI 1268 - SUPREME COURT . List this case in the week commencing 19.05.2025.

Summary

The Allahabad High Court addressed the issue of appointment of an arbitrator, with the respondents opposing on limitation grounds. Respondents argued that since the final bills were submitted in October 2019, the three-year limitation for initiating arbitration proceedings expired in October 2022. Regarding the GST claim, respondents noted that the applicant was informed in September 2020 that GST was not payable, and limitation for this claim would expire in September 2023. The applicant's notice for appointment of arbitrator dated 04.10.2023 and subsequent proceedings filed on 30.01.2024 were thus contended to be time-barred.The applicant relied on the Supreme Court's ruling in *Arif Azim Co. Ltd. v. Aptech Limited* (2024) 5 SCC 313, specifically paragraph 84, which held that the limitation period suspended during the COVID-19 pandemic (from 15.03.2020 to 01.03.2022) was revived thereafter, effectively extending the limitation period. The applicant sought time to refer to *Prakash Corporates v. Dee Vee Projects Limited* (2022 (5) SCC 112), cited in *Arif Azim*.The Court adjourned the matter to the week commencing 19.05.2025 for further consideration.