MAYA CONSTRUCTION Vs. UNION OF INDIA

JUDGEMENT

(1.) The petition is said to be under Sec. 11(5) of the Arbitration and Conciliation Act, 1996.

(2.) The prayer in the petition is for setting up an arbitral tribunal to adjudicate the disputes that have arisen between the parties in terms of the arbitration agreement contained in clause 70 of the general conditions of contracts pertaining to Air Force. There is no dispute as to the existence of the arbitration agreement between the parties. The principal claim indicated in the petition also appears to be capable of adjudication in an arbitral reference.

(3.) A serious objection is taken on behalf of respondent Air Force authorities to the effect that the claim is ex facie barred by limitation. It is submitted that by the time the demand for setting up an arbitral tribunal was made, the claim was no longer live in the sense that a period of three years had elapsed since the completion of work, receipt of payment and severance of relationship between the parties.