6 October 2021 | Sagar Constructions v. Govt. of NCT of Delhi | Arb. P. 856 of 2021| Delhi High Court | Vibhu Bakhru J | 2021 SCC OnLine Del 4648

An application for the appointment of an arbitrator was resisted on the ground that the petitioner did not invoke arbitration within the time specified by the agreement (less than prescribed by law), and the claim was barred by limitation.

Could the period for invoking the arbitration be restricted to less than the Limitation Act, 1963?

The court said that the point was no longer res integra. It relied on Grasim Industries Limited v. State of Kerala (2018) 14 SCC 265, where it has been ruled that providing a restricted period for raising an arbitral dispute would be void under Section 28(b) of the Contract Act, 1872.

The court also referred to a decision by a coordinate bench in National Highways Authority India v. Mecon - Gea Energy Systems India Ltd. JV (2013) 199 DLT 397.

All contentions including the one on limitation were left open for the tribunal in light of Vidya Drolia (2021) 2 SCC 1).

Read the judgment here.