15 March 2021 | Secunderabad Cantonment Board v. M/s B Ramachandraiah & sons | Civil Appeal No. 900-902 of 2021 | RF Nariman & BR Gavai JJ | 2021 SCC OnLine SC 219

A demand for arbitration was made to the appellant by letter of 07 November 2006. The demand was reiterated and a request to appoint an arbitrator made on 13 January 2007. Therefore, held on facts, at the very latest, time began to run on and from 12 February 2007 (expiry of 30 days). The time ended three years after it started to run [under Article 137, Limitation Act, 1963].

The rejection of the demand of arbitration on 10 November 2010 would not give fresh start to limitation. So, the High Court clearly fell in error in appointing an arbitrator after counting the limitation period from November when the demand was rejected.