Alok Sharma, J. - (1.) ON restoration, the appeal is taken up for hearing.
(2.) THE appellant is aggrieved of the impugned order dated 06.09.1999, passed by the Additional District Judge No. 1, Kota, whereby its application under Section 20 of the Arbitration Act, 1940 (hereinafter the Act of 1940) has been dismissed on the ground of it being hit by limitation having been filed beyond a period of three years from the time when the right to apply accrued. The facts of the case that that the appellant entered into a contract with the respondents -Railway Department on 12.02.1988 to supply and establish a 300 KVA DG Set and for erection, installation, testing and commissioning thereof. As per the agreement, the work was to be done within four months commencing 11.02.1988 and the approximate cost was Rs. 11,40,545/ -. Owing to delays and differences or the reason therefor between the contracting parties, the appellant's contract was rescinded on 13.03.1991. In these circumstances, the appellant vide notice dated 11.09.1991 required the respondent -Railway to make payment of outstanding amount and purportedly for appointment of an Arbitrator in terms of clause 55 and 56 of the Contract between the parties. It was the case of the appellant that vide its letter dated 04.03.1992, the respondent -Railway negated the claim of the appellant. Whereupon it filed an application under Section 20 of the Act of 1940 before the Additional District Judge No. 1, Kota for a direction that the arbitration agreement be filed in the court and an Arbitrator be appointed.
(3.) ON service of the application under Section 20 of the Act of 1940 on the respondent -Railway, a reply of denial was filed. It was submitted that the application under Section 20 of the Act of 1940 was hit by limitation and therefore deserving of dismissal. Vide impugned order dated 06.09.1999, the learned lower court upheld the contention of the respondent -Railway and dismissed the appellant's application under Section 20 of the Act of 1940 on the ground of limitation.;