In Brief
A franchisee company in Afghanistan sought appointment of an arbitrator against an Indian franchisor over non-payment of amounts due from a training course conducted in Kabul in 2017. The franchisor objected on grounds that the claims were time-barred under the Limitation Act, 1963. The Supreme Court held that the limitation period for filing a Section 11(6) application is three years from when the other party fails to appoint an arbitrator after notice. The cause of action arises not on non-payment alone but when the claimant asserts a claim and the respondent denies it—here on 28 March 2018. The arbitration notice was validly issued within the three-year window. The Court appointed a former Supreme Court Judge as sole arbitrator, noting that claims are not ex facie time-barred.
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