State Of West Bengal vs M/S. P. Kanjilal And Company on 17 April, 2025

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1. This is an application under Section 36(2) of the Arbitration and

Conciliation Act, 1996. The petitioner is the award-debtor. The petitioner

prays for stay of operation of the arbitral award dated August 8, 2022,

passed by the learned sole arbitrator.

2. It is contended by Mr. Mandal that the point of limitation was disposed of

as a preliminary issue by the learned arbitrator without referring to the

appropriate provisions of law. The claim was patently time barred. The

work was completed in 1992 and the invocation of the arbitration clause

for the was first time made on May 24, 2010, i.e., after 17 years from the

completion of the work. Such delay had defeated the right of the claimant

to seek any relief under the contract. It is urged that the learned

arbitrator had erroneously relied on clauses 7, 8 and 9 of the Conditions

of Contract in support of the finding that the claimant had a mandatory

right to submit the bill in terms of the contract and the claimant had done

so, but they remained unpaid. Once such bills were submitted, the

obligation on the respondent to pay such bill had set in. On such flimsy

grounds, the learned arbitrator admitted a time-barred claim by

misconstruing the clauses of the contract. The further contention of Mr.

Mandal is that, the learned arbitrator was under a misconception that if

the bills were not counter signed by the respondent. The contract would

not come to an end and the relationship between the parties would not

terminate. The issue of limitation could not be urged under such

circumstances. These findings, according to Mr. Manal, were errors

apparent on the face of the record and the award should be stayed

unconditionally.



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