In Brief
The appellant, a works contractor, sought court appointment of an arbitrator to resolve payment disputes with the respondent electricity board arising from three work contracts dated 1979–1985. The final bills were issued in 1983 and 1989, but arbitration was invoked only in 2002. The Supreme Court held that the arbitration applications were barred by the three-year limitation period prescribed under Article 137 of the Limitation Act, 1963. The cause of action arose when the final bills became due, not when negotiations commenced. The Court distinguished cases involving family settlements and continuous negotiations, holding that in commercial disputes, mere correspondence and reminders do not extend the limitation period. The appellant's 14-year delay, coupled with absence of evidence of consistent negotiation efforts, rendered the claim hopelessly barred.
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