M V V SATYANARAYANA Vs. UNION OF INDIA

JUDGEMENT

(1.) The short but interesting question involved in this application is whether the application under Section 11 of the Arbitration and Conciliation Act, 1996 (for short, 'the Arbitration Act') is barred by limitation?.

(2.) The applicant was entrusted the work of unloading of 1108.56 MTs of Rails on SC-WD Section, between Gullaguda - Chittigidda and Nagalapalli - Sankarapalli Stations in connection with doubling of track between Telapur - Gullaguda and Gullaguda - Vikarabad stations in the year 1988 and the applicant had completed the work in the same year. The letter of acceptance was issued by the respondents on 20-9-90 and the agreement for the aforesaid work already done was entered into between the applicant and the respondents on 28-2-1991. The value of the work was Rs. 88,684/-. The applicant had submitted his bill dated 2-6-1991 for payment to the respondents. The applicant submitted a no-claim certificate and thereafter, the final payment was made on 20-5-94. The security deposit of Rs. 8,640/- was released vide sanction letter dated 15-6-94. The applicant had raised a dispute on 18-8-1994 and had asked the respondents to refer the dispute to Arbitrator as per Clauses 63 and 64 of the General Conditions of Contract (for short, 'GCC').

(3.) The claims in respect of which arbitration is sought are of the value of Rs. 20,74,875/- for the recovery of which amount the applicant has invoked the clauses 63 and 64 of GCC.