MEGHNA ENTERPRISES Vs. STATE OF J&K

JUDGEMENT

(1.) WHETHER there is any period prescribed for filing an application under Section 20 of the Arbitration Act is a substantial question of law which is the subject matter of issue No. 2 framed in this petition. It is submitted on behalf of the respondent that as present application was filed beyond the period of limitation prescribed under article 181 of the Schedule of the Limitation Act, the same was liable to be dismissed. It is submitted that application for direction in terms of Section 20 of the Arbitration Act has to be filed within the period prescribed by the aforesaid article of the Limitation Act.

(2.) THE facts giving rise to the filing of the present petition are that in pursuance to the tender notice and consequent supply orders issued in favour of the petitioner, the articles were supplied to the respondents as per directions contained in the supply orders. Most of the items are alleged to have been supplied to the respondents in the month of July, 1984. The petitioner claims to be entitled to the deposited amount in respect of the supply orders and the payment of the price of the material supplied against such orders. The respondent No. 3 is alleged to have raised un -necessary, illegal and unjustified dispute about the authenticity of the market rates vide his letter dated 12 -1 -1985 with direction to the Supdt. Engineer P.W.D. Circle Leh, Executive Construction Division Leh, Executive, Engineer Mechanical Division Leh and R&B Division Leh that no payment should be made to the petitioner unless "No objection Certificate" was issued by him. The action of respondent No. 3 has been challenged and the disputes raised are sought to be referred to the arbitrator.

(3.) I have heard the learned counsel for the parties and have perused the record.