Case Note & Summary
The applicant, Capacite Infraprojects Ltd, a construction company, filed an application under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of an arbitrator to resolve disputes with the respondent, T. Bhimjyani Realty Pvt Ltd, arising from a construction contract for a residential project called 'Nilkanth Woods' in Thane. The parties had entered into a Letter of Award dated 20/1/2014 and an Articles of Agreement on 13/3/2014 for Phase-1 of the project, with a contract value of Rs.320,25,00,000. The contract documents included General Conditions of Contract and Special Conditions of Contract, which contained an arbitration clause. Disputes arose regarding payment for work done, and the applicant invoked the arbitration clause. The respondent opposed the application, arguing that the claims were barred by limitation and that the arbitration clause was not applicable. The court, after hearing both sides, held that the existence of an arbitration clause is sufficient to appoint an arbitrator under Section 11(6), and the issue of limitation is a matter for the arbitrator to decide. The court allowed the application and appointed a sole arbitrator to adjudicate the disputes.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Section 11(6) Arbitration and Conciliation Act, 1996 - Existence of Arbitration Clause - The court held that where an arbitration clause exists in the contract documents, the court must appoint an arbitrator to adjudicate disputes, as the legislative intent is to minimize judicial intervention. The court rejected the respondent's contention that the claims were barred by limitation, noting that the contract was not fully terminated and the applicant's claims were live. (Paras 1-10) B) Limitation - Arbitration Claims - Termination of Contract - The court held that the question of limitation is a mixed question of fact and law to be decided by the arbitrator, not at the stage of Section 11 application. The court noted that the contract was not terminated and the applicant continued to perform, so the claims were not barred. (Paras 5-8)
Issue of Consideration
Whether an arbitrator should be appointed under Section 11(6) of the Arbitration and Conciliation Act, 1996, to adjudicate disputes arising from a construction contract, and whether the claims are barred by limitation.
Final Decision
The court allowed the application and appointed a sole arbitrator to adjudicate the disputes between the parties.
Law Points
- Section 11(6) of the Arbitration and Conciliation Act
- 1996
- existence of arbitration clause
- appointment of arbitrator
- limitation for arbitration claims
- termination of contract
