In Brief
Rashtriya Ispat Nigam Ltd (Visakhapatnam Steel Plant) challenged an arbitration award where the tribunal determined the base year for calculating escalation as 1992 (not 1994) in a transportation contract. The appellant's work contract with the respondent transporter ran from 1992 to 1997, but escalation disputes arose when bills were raised in 1998. The District Court set aside the award citing limitation. The High Court upheld the award, finding the cause of action arose from the disputed bills in 1998, not contract completion in 1997. The Supreme Court affirmed, holding that the real dispute arose when one party asserted and the other denied the right to payment—in this case, after 1998 bill submissions—so the arbitration notice was timely and not barred by limitation."
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