In Brief
The Supreme Court set aside the High Court's order appointing an arbitrator in a dispute between HPCL Bio-Fuels and a contractor. The respondent had initially filed an arbitration petition in 2018 but unconditionally withdrew it. After pursuing insolvency proceedings (which were dismissed as the debt was disputed), he filed a fresh arbitration petition in 2022. The Court held that: (1) the fresh petition was not maintainable without liberty to refile; (2) it was time-barred as it exceeded the three-year limitation period; (3) time spent in insolvency proceedings cannot be excluded from the limitation period since insolvency and arbitration serve different purposes (rehabilitation vs. dispute resolution); and (4) the respondent is not entitled to condonation of delay. The appeal was allowed and the arbitration petition dismissed.
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