JUDGEMENT
GYAN SUDHA MISRA, J. -
(1.) THIS application has been filed by the petitioner for appointment of an Arbitrator in regard to a dispute, which, according to him, has arisen on account of non -payment of a sum of Rs. 1,16,450/ -.
(2.) HOWEVER , after hearing the Counsel for the parties, it is clear that a work -order was issued to the petitioner for a sum of Rs. 3,55,800/ - for construction of a canal known as Torai Left Bank Main
Canal. This work -order was issued to the petitioner way back in the year 1976 -77 and the same
was executed and completed in the year 1979 after certain extensions were granted in favour of
the petitioner. The petitioner also received payment of Rs. 3,34,499/ -, which was as per the work
executed by him and the last payment that was received by him was on 25th March, 1985, which
he claims to have received under protest. Thereafter the petitioner although filed an application for
appointment of an Arbitrator, the same got bogged down into departmental enquiries and opinion
and finally the respondents did not appoint an Arbitrator, although there was a clause to that effect
in the agreement.
The respondents although failed to appoint an Arbitrator, the petitioner did not file any application for appointment of an Arbitrator, but filed a writ petition in the High Court for the
reasons best known to him, which ultimately was dismissed, granting liberty to him to take recourse
to Clause 23 of the agreement for appointment of an Arbitrator. Thereafter he also seems to have
gone one step ahead for appointment of an Arbitrator, but he did not file an application for
appointment of an Arbitrator before the High Court. He, however, had filed a suit before the District
Court claiming payment in terms of the agreement, which was dismissed on the ground that there
is a clause for arbitration by appointment of an Arbitrator.
(3.) THE petitioner finally filed this application for appointment of an Arbitrator in the year 2007 claiming a sum of more than Rs. 56 lacs which, on the face of it, appears to be exorbitant as the
work -order awarded to the petitioner was for Rs. 3,55,800/ -, against which he has already
received payment of Rs. 3,34,499/ - way back in the year 1985. Yet if he was dissatisfied, there
was a clause in the agreement to seek appointment of an Arbitrator, but the petitioner travelled
one forum to the other and finally filed the application for appointment of an Arbitrator before this
Court in the year 2007. Thus, this application is time barred by more than 22 years under Section 43
(1) of the Arbitration & Conciliation Act, 1996, which clearly lays down that the Limitation Act, 1963,
shall apply to arbitrations as it applies to proceedings in Court, Section 43(3) of the Arbitration &
Conciliation Act, 1996, no doubt, also incorporates a provision to the effect that where an
arbitration agreement to submit future disputes to arbitration provides that any claim to which the
agreement applies shall be barred unless some step to commence arbitral proceedings is taken
within a time fixed by the agreement and a dispute arises to which the agreement applies, the
Court, if it is of the opinion that in the circumstances of the case undue hardship would otherwise
be caused, notwithstanding that the time so fixed has expired, may on such terms, if any, as the
justice of the case may require, extend the time for such period as it thinks proper.;