MAHANADI COALFIELDS LTD. Vs. SHYAMLAL AGRAWAL

JUDGEMENT

(1.) AN application under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the Act) was filed by the appellant -Mahanadi Coal Fields Ltd (for short, 'the M.C.L.) before the learned District Judge, Sambalpur challenging the arbitral award dated 22.7.2002 passed by the Arbitrator on a dispute between the parties referred to the said Arbitrator by this Court. The said application being rejected by judgment dated 9.3.2005, this appeal has been preferred under Section 37 of the Act by the appellant M.C.L. against the said judgment dated 9.3.2005 passed in Arbitration Petition No.2 of 2002 by the learned District Judge, Sambalpur.

(2.) FROM the application filed by the appellant under Section 34 of the Act before the learned District Judge, it appears that the award passed by the learned Arbitrator was challenged by the appellant on the ground that the award is untenable having not assigned any reason in support of the determination of the liability, the finding of the learned Arbitrator that the claim of the respondent is not barred by limitation, is an error of law apparent on the face of the award. According to the appellant, the cause of action arose on 15.4.1992 when the final bill was prepared or in the alternative on 5.6.1992, when the respondent submitted a set of claim, and, as such, the claim was barred having been made after the period of limitation, i.e., after three years from the date, when the cause of action arose. The further ground stated in the petition was that the finding of the learned Arbitrator that the cause of action accrued on 15/16.3.2000 is not tenable. The other grounds of challenge were with regard to factual findings arrived at by the learned Arbitrator.

(3.) THE main thrust of argument of Shri Mohanty, learned counsel for the appellant is that, all the documents exhibited before the learned Arbitrator, unequivocally disclose that the cause of action for the arbitration arose on 5.4.1992, and, therefore, the claim having been made after the period of limitation, which is three years, the same is barred by limitation inasmuch as the last date for filing of the claim was 14.4.1995 which was before the commencement of the Act which came into operation from 1.10.1999.