In Brief
A shareholder of ASAP Fluids Pvt. Ltd. sought appointment of an arbitrator to resolve disputes over the issuance of share certificates under a 2011 Shareholders Agreement. The respondent companies argued the claims were time-barred. The Supreme Court held that referral courts at Section 11 of the Arbitration & Conciliation Act must examine only whether a prima facie arbitration agreement exists and whether the application itself meets the three-year limitation period. Courts must not conduct intricate enquiries into whether substantive claims are time-barred—this is exclusively the arbitrator's domain. The Court allowed the petitions and appointed a sole arbitrator, but noted the tribunal may impose costs on the shareholder if it ultimately finds the claims time-barred.
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