I.P.MUKERJI,J. - (1.) A.P. 1698 of 2015 1. This is an application under Section 11 of the Arbitration and Conciliation Act , 1996 (A.P. No. 1698 of 2015). It asks the court to appoint an arbitrator, in terms of the arbitration clause contained in the agreement dated 7th August, 2001 between Dipendra Nath Banerjee the first respondent, Majestic Estate & Developers Pvt. Ltd., the second respondent and Bhikhan Chand Baid with Mrs. Sunisha Banerjee as a confirming party.
(2.) It is an admitted position that by the passage of time this agreement binds the parties to this application. This agreement put an end two earlier agreements dated 1st November, 1996 and 7th June, 1998. Under the agreement of 7th August, 2011 the first respondent had to pay to Bhikhan Chand Baid , described as the broker, the sum of Rs. 1,50,00,000 ( rupees one crore and fifty lacs only).
(3.) It had an arbitration clause which was clause-11. It is set out hereunder: "11. In the event of any dispute and/or difference of opinion toughing any clause or clauses of this Agreement then the same shall be referred to a mutually agreed Arbitrator and the proceedings shall be governed by the Arbitration and Conciliation Act , 1996." Mr. Malay Kr. Ghosh, learned senior Advocate appearing for the first respondent argues that the court should not even consider sending the matter to arbitration. The claim of the petitioners is hopelessly barred by the laws of limitation. Such bar appears on the face of the records. At this point it is necessary to set out Section 21 of the said Act. It deals with the commencement of arbitral proceedings. "21. Commencement of arbitral proceedings--- Unless otherwise agreed by the parties, the arbitral proceedings in respect of a particular dispute commences on the date on which a request for that dispute to be referred to arbitration is received by the respondent." It is also necessary to set out Section 43 (1) (2) of the said Act. "43. Limitation--- (1) The Limitation Act , 1963 (36 of 1963) shall apply to arbitrations as it applies to proceedings in court. (2) For the purposes of this section and the Limitation Act , 1963 (36 of 1963), an arbitration shall be deemed to have commenced on the date referred in Section 21 ." ;