In Brief
Bharat Sanchar Nigam Limited challenged a High Court order referring a dispute to arbitration. Nortel Networks, after withholdings of amounts (Rs. 99.70 crore) by BSNL for over 5.5 years, invoked arbitration in April 2020—more than 5 years after BSNL rejected its claim in August 2014. The Supreme Court held that the limitation period for applying under Section 11 of the Arbitration Act is governed by Article 137 of the Limitation Act (three years from accrual of right). Where claims are manifestly time-barred with no subsisting dispute, courts may refuse reference. The notice was time-barred; mere settlement discussions do not extend limitation. The appeals were allowed and the matter was not referred to arbitration.
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