In Brief
The Bihar Industrial Area Development Authority entered a drainage contract with Rama Kant Singh on 15 December 2007 and terminated it on 8 June 2010, forfeiting the respondent's security deposit. The respondent filed a reference before the Arbitration Tribunal on 21 March 2013. The Authority challenged the reference as time-barred, arguing it should have been filed within one year of the dispute. The Supreme Court held that although the 2008 Act prescribes a one-year limitation, the Tribunal has power under Section 18 to extend it if sufficient cause is shown. The respondent's long-pending representation against termination (never decided) constituted sufficient cause. The Tribunal correctly found no contractual provision authorizing forfeiture. The Court partly allowed the appeal, awarding principal sums but modifying the interest provisions to accrue only if payment was delayed beyond three months.
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