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Supreme Court of India 2019-09-03 dismissed

M/S GEO MILLER & CO.PVT.LTD vs CHAIRMAN, RAJASTHAN VIDYUT UTPADAN NIGAM LTD

Bench: 3 — N.V. Ramana, Mohan M. Shantanagoudar, Ajay Rastogi

In Brief

The appellant sought appointment of an arbitrator to recover unpaid amounts under three water treatment plant contracts from 1979–1985. The respondent objected, arguing the claim was barred by the three-year limitation period that commenced when the final bills became due in 1983 and 1989. The appellant's applications were filed only in 2002–2003, nearly two decades later. The Supreme Court upheld the dismissal, holding that the limitation period for invoking arbitration runs from when the cause of action arises, not from when negotiations cease. The Court rejected arguments that the parties' correspondence extended the deadline, finding no sufficient evidence of genuine settlement negotiations to justify delay and no 'undue hardship' from the appellant's own 14-year inaction.

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Arbitration Limitation Commercial Disputes Procedural Law

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