{"id":102556,"date":"2002-03-16T00:00:00","date_gmt":"2002-03-15T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ashi-p-limited-vs-union-of-india-uoi-western-on-16-march-2002"},"modified":"2018-09-24T14:11:13","modified_gmt":"2018-09-24T08:41:13","slug":"ashi-p-limited-vs-union-of-india-uoi-western-on-16-march-2002","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ashi-p-limited-vs-union-of-india-uoi-western-on-16-march-2002","title":{"rendered":"Ashi (P) Limited vs Union Of India (Uoi) (Western &#8230; on 16 March, 2002"},"content":{"rendered":"<div class=\"docsource_main\">Delhi High Court<\/div>\n<div class=\"doc_title\">Ashi (P) Limited vs Union Of India (Uoi) (Western &#8230; on 16 March, 2002<\/div>\n<div class=\"doc_author\">Author: S Sinha<\/div>\n<div class=\"doc_bench\">Bench: S Sinha, A Sikri<\/div>\n<\/p>\n<pre><\/pre>\n<p>JUDGMENT<\/p>\n<p> S.B. Sinha, C.J.  <\/p>\n<p> 1. The petitioner herein in response to a tender floated by the respondents for<br \/>\nmanufacture and supply of 2,50,000 pre-stressed mono block concrete sleepers submitted<br \/>\nits offer pursuant whereto the parties entered into an agreement, which contained an<br \/>\narbitration clause. On or about 30.03.1992, the said, the said contract was terminated whereupon<br \/>\nthe petitioner herein by a demand notice dated 05.01.1995 called upon the respondents to<br \/>\npay a sum of Rs. 39,24,000\/- by way of damages. Again by a notice dated 18.03.1995,<br \/>\nthe petitioner called upon the respondents to appoint an Arbitrator.\n<\/p>\n<p> 2. By a letter dated 11.12.1995 the request for arbitration made by the<br \/>\npetitioner was rejected. The petitioner thereafter filed a suit under Section 20 of the<br \/>\nArbitration Act, 1940 (in short, &#8216;1940 Act&#8217;) on 25.05.1996, which was marked as Suit<br \/>\nNo. 1541 of 1996. However, the said suit was converted into an application under<br \/>\nSection 11 of the Arbitration and Conciliation Act, 1996 (in short, &#8216;the Act&#8217;).\n<\/p>\n<p> 3. By reason of the impugned order dated 21.12.2000, the said application<br \/>\nhas been dismissed on the ground of being barred by limitation. This writ petition is<br \/>\ndirected against the said order.\n<\/p>\n<p> 4. Mr. Arvind Nigam, the learned counsel appearing on behalf of the<br \/>\npetitioner, would submit that having regard to the provisions contained in Article 137 of<br \/>\nthe Limitation Act, 1963, the learned Single Judge must b e held to have erred in<br \/>\ndismissing the said application.\n<\/p>\n<p> 5. The learned counsel would contend that a cause for filing an application<br \/>\nunder Section 11(6) of the Act would arise on the day when the request for appointment<br \/>\nof the Arbitrator was rejected and thus the period of limitation in this case would start<br \/>\nfrom 11.12.1995.\n<\/p>\n<p> 6. In support of the aforesaid contention, the learned counsel has placed<br \/>\nreliance on  <a href=\"\/doc\/1378123\/\">Utkal Commercial Corporation v. Central Coal Fields Ltd.<\/a>  ,  <a href=\"\/doc\/20683\/\">Major (Retd.)<br \/>\nInder Singh Rekhi v. Delhi Development Authority   and  Konkan Railway Corporation<br \/>\nLtd. and Ors.<\/a> v. Mehul Construction Co.  .\n<\/p>\n<p> 7. Ms. B. Sunita Rao, the learned counsel appearing on behalf of the<br \/>\nrespondent, on the other hand, would submit that having regard to the fact that the<br \/>\nprocess for referring the matter to the Arbitrator was initiated prior to coming into force<br \/>\nof the Act, thus an application under Section 11(6) thereof must be held to be not<br \/>\nmaintainable.\n<\/p>\n<p> 8. The arbitration clause as mentioned in the aforesaid agreement is as<br \/>\nunder:-\n<\/p>\n<p> &#8220;ARBITRATION:\n<\/p>\n<p> a) In the event of any question, dispute or difference<br \/>\narising under these conditions or any special conditions of<br \/>\ncontract or in connection with this contract except as to any<br \/>\nmatters (the division of which is specially provided by these<br \/>\nor the special conditions) the same shall be referred to the<br \/>\nsole arbitration of a Gazetted Railway Officer appointed to<br \/>\nbe the Arbitrator, by the General Manager in the case of<br \/>\ncontracts entered into by the Zonal Railways and Production<br \/>\nUnits; by any member of the Railway Board, in the case of<br \/>\ncontracts entered into by the Railway Board; and by the<br \/>\nHead of the Organization in respect of contracts entered into<br \/>\nby the other organizations under the Ministry of Railways.<br \/>\nThe Gazetted Railway Officer to be appointed as Arbitrator,<br \/>\nhowever, will not be one of those who had an opportunity to<br \/>\ndeal with the matters to which the contract relates or who in<br \/>\nthe course of their duties as Railway servants have<br \/>\nexpressed views on all or any of the matters under dispute or<br \/>\ndifference. The award of the Arbitrator shall be final and<br \/>\nbinding on the parties to this contract.&#8221;\n<\/p>\n<p> Article 137 of the Limitation Act, 1963 reads thus:- <\/p>\n<pre>\n\n   137.        Any other application        Three years          When the\n            for which no period of                            right to\n            limitation is provided                            apply\n            elsewhere in this                                 accrues.\"\n            Division. [1905-\n            Article 151] \n \n \n\n<\/pre>\n<p> 9. The petitioner herein by a letter dated 18.03.1995, as noticed hereinbefore,<br \/>\ncalled upon the respondent to appoint Arbitrator in terms of the arbitration clause referred<br \/>\nto hereinbefore in the following terms:-\n<\/p>\n<p>  &#8220;14. In view of the above, you are hereby requested to<br \/>\nappoint and nominate a Gazetted Railway Officer to be an<br \/>\nArbitrator within 15 days from the receipt of this notice and<br \/>\nrefer the above disputes and differences mentioned in para<br \/>\n12 above to the said Arbitrator for adjudication.&#8221;\n<\/p>\n<p> 10. The aforementioned letter was replied by the respondent by its letter dated<br \/>\n11.12.1995 stating as under:-\n<\/p>\n<p>&#8220;WESTERN RAILWAYS  <\/p>\n<p> Head quarter office, <\/p>\n<p>Churchgate, Bombay, 20.\n<\/p>\n<p> No. W634\/12\/2\/14  <\/p>\n<p> Dt. 11.12.1995  <\/p>\n<p>M\/s. Ashi Private Ltd., <\/p>\n<p> S-66, L.G. Floor, <\/p>\n<p> Greater Kailash-I <\/p>\n<p> New Delhi: 110048  <\/p>\n<p>Sub: Manufacture and supply of MG concrete sleepers<br \/>\nagainst contract No. W634\/12\/2\/14 Dt: 25.8.89.\n<\/p>\n<p>Ref: Shri. Sanjeev Ralli Advocate Delhi&#8217;s letter No. Nil<br \/>\nDated: 6.1.95 and dated: 18.3.95.\n<\/p>\n<p> Your request for arbitration received through above<br \/>\nreferred letters from Shri. Sanjeev Ralli your advocate, has<br \/>\nbeen considered by Railway Administration (Western<br \/>\nRailway) and found that it is not justified and not tenable, as<br \/>\nsuch the demand for arbitration is regretted.\n<\/p>\n<p>[Chief Engineer (G)]  <\/p>\n<p>for General Manager&#8221;\n<\/p>\n<p>11. In the aforementioned situation, the said application under Section 20 of<br \/>\n1940 Act was filed.\n<\/p>\n<p> Section 20 of 1940 Act reads thus:-\n<\/p>\n<p>&#8220;Section 20.  Application to file in Court arbitration agreement-\n<\/p>\n<p>(1) Where any persons have entered into an arbitration<br \/>\nagreement before the institution of any suit with respect to<br \/>\nthe subject-matter of the agreement or any part of it, and<br \/>\nwhere a difference has arisen to which the agreement applies<br \/>\nthey or any of them, instead of proceeding under Chapter II,<br \/>\nmay apply to a Court having jurisdiction in the matter to<br \/>\nwhich the agreement relates, that the agreement be filed in<br \/>\nCourt.\n<\/p>\n<p> (2) The application shall be in writing and shall be<br \/>\nnumbered and registered as a suit between one or more of<br \/>\nthe parties interested or claiming to be interested as plaintiff<br \/>\nor plaintiffs and the remainder as defendant or defendants, if<br \/>\nthe application has been presented by all the parties, or, if<br \/>\notherwise, between the applicant as plaintiff and the other<br \/>\nparties as defendants.\n<\/p>\n<p> (3) On such application being made, the Court shall<br \/>\ndirect notice thereof to be given to all parties to the<br \/>\nagreement other than the applicants, requiring them to show<br \/>\ncause within the time specified in the notice why the<br \/>\nagreement should not be filed.\n<\/p>\n<p> (4) Where no sufficient cause is shown, the Court shall<br \/>\norder the agreement to be filed and shall make an order of<br \/>\nreference to the arbitrator appointed by the parties, whether<br \/>\nin the agreement or otherwise, or where the parties cannot<br \/>\nagree upon an arbitrator, to an arbitrator appointed by the<br \/>\nCourt.\n<\/p>\n<p>(5) Thereafter the arbitration shall proceed in accordance<br \/>\nwith, and shall be governed by, the other provisions of this<br \/>\nAct so far as they can be made applicable.&#8221;\n<\/p>\n<p> 12. However, the said suit was converted into an application under Section 11<br \/>\n(6) of the Act purported to be on a wrong notion.\n<\/p>\n<p>13. In absence of any specific provisions contained in the schedule appended<br \/>\nto the Limitation Act indisputably Article 137 thereof would be attracted.\n<\/p>\n<p> In  Major (Retd.) Inder Singh Rekhi (Supra),  the Apex Court held:-\n<\/p>\n<p>&#8220;4. Therefore, in order to be entitled to order of<br \/>\nreference under Section 20, it is necessary that there should be an<br \/>\narbitration agreement and secondly, different must arise to<br \/>\nwhich this agreement applied. In this case, there is no<br \/>\ndispute that there was an arbitration agreement. There has<br \/>\nbeen an assertion of claim by the appellant and silence as<br \/>\nwell as refusal in respect of the same by respondent.<br \/>\nTherefore, a dispute has arisen regarding non-payment of<br \/>\nthe alleged dues of the appellant. The question is for the<br \/>\npresent case when did such dispute arise. The High Court<br \/>\nproceeded on the basis that the work was completed in 1980<br \/>\nand, therefore, the appellant became entitled to the payment<br \/>\nfrom that date and the cause of action under Article 137 arose<br \/>\nfrom that date. But in order to be entitled to ask for a<br \/>\nreference under Section 20 of the Act there must not only be an<br \/>\nentitlement to money but there must be a difference or a<br \/>\ndispute must arise. It is true that on completion of the work<br \/>\na right to get payment would normally arise but where the<br \/>\nfinal bills as in this case have not been prepared as appears<br \/>\nfrom the record and when the assertion of the claim was<br \/>\nmade on 28th Feb. 1983 and there was non-payment, the<br \/>\ncause of action arose from that date, that is to say, 28th of<br \/>\nFeb. 1983. It is also true that a party cannot postpone the<br \/>\naccrual of cause of action by writing reminders or sending<br \/>\nreminders but where the bill had not been finally prepared,<br \/>\nthe claim made by a claimant is the accrual of the cause of<br \/>\naction. A dispute arises where there is a claim and a denial<br \/>\nand repudiation of the claim. The existence of dispute is<br \/>\nessential for appointment of an arbitration under Section 8 or a<br \/>\nreference under Section 20 of the Act. Lee Law of Arbitration by<br \/>\nR.S. Bachawat, 1st Edition, page 354. There should be<br \/>\ndispute and there can only be a dispute when a claim is<br \/>\nasserted by one party and denied by the other on whatever<br \/>\ngrounds. Mere failure or inaction to pay does not lead to the<br \/>\ninference of the existence of dispute. Dispute entails a<br \/>\npositive element and assertion in denying, not merely<br \/>\ninaction to accede to a claim or a request. When in a<br \/>\nparticular case a dispute has arisen or not has to be found out<br \/>\nfrom the facts and circumstances of the case.&#8221;\n<\/p>\n<p> 14. Yet again in  Utkal Commercial Corporation (Supra),  it was held by the<br \/>\nApex Court:-\n<\/p>\n<p>&#8220;13. If the submission is that the claims filed before the<br \/>\narbitrator are barred by limitation, we cannot examine such a<br \/>\ncontention without the relevant particulars and details of the<br \/>\ndisputes between the parties being placed before us. These<br \/>\nparticulars and even the documents have not been filed<br \/>\nbefore us because such a contention has not been raised in<br \/>\nthese proceedings at all. One cannot assume that the cause<br \/>\nof action arose on the date of expiry of the contract. As<br \/>\npointed out by this Court in  Major (Retd.) Inder Singh Rekhi<br \/>\n case   in the passage cited above, cause of action can arise<br \/>\nlater, depending on the facts of the case. Whether the claims<br \/>\nwere or were not barred by limitation before the arbitrator<br \/>\ncan be examined only on the basis of the relevant material,<br \/>\nwhich material has not been produced. We, therefore,<br \/>\ndeclined to examine this contention.&#8221;\n<\/p>\n<p> 15. It is not in dispute that as the learned Single Judge exercised his<br \/>\njurisdiction under Section 11(6) of the Act, a writ petition, therefore, is maintainable.\n<\/p>\n<p> 16. In  Konkan Railway Corporation Ltd. and Ors. (Supra),  the Apex court held that<br \/>\nan order under Section 11(6) of the Act being administrative in nature, a writ petition<br \/>\nwould be maintainable.\n<\/p>\n<p>17. This aspect of the matter has been considered by a Division Bench of the<br \/>\nAndhra Pradesh High Court in  <a href=\"\/doc\/1965867\/\">Union of India v. Vengamamaba Engineering Co. and<br \/>\nOrs.<\/a>  2001(4) ALT 45 (D.B.). The Division Bench considered the question as to when a writ petition would be<br \/>\nmaintainable and held thus:-\n<\/p>\n<p> &#8220;17. In first Konkan Railways  case (1 supra), a three-judge<br \/>\nBench referring to various provisions of the said Act<br \/>\nobserved that when the legislative intent is clear, it would be<br \/>\nproper for the Chief Justice or his nominee just to appoint an<br \/>\narbitrator without wasting any time or without entertaining<br \/>\nany contentious issues raised at that stage, by a party<br \/>\nobjecting to the appointment of an arbitrator inasmuch as all<br \/>\nissues can be raised in the arbitral proceedings. But dealing<br \/>\nwith a contingency where the Chief Justice or his nominee<br \/>\nrefuses to make an appointment of arbitrator, it was held that<br \/>\nremedy by way of writ petition would lie. It was held that if<br \/>\nan order passed under Section 11(6) is construed to be a<br \/>\njudicial or quasi-judicial order, the same would be amenable<br \/>\nto judicial intervention and any reluctant party may frustrate<br \/>\nthe entire purpose of the Act by adopting dilatory tactics in<br \/>\napproaching a Court of law even against an order of<br \/>\nappointment of an arbitrator, which interpretation should be<br \/>\navoided with a view to achieve the basic objective for which<br \/>\nthe Parliament enacted the Act of 1996 adopting<br \/>\nUNICITRAL Model. It was held:\n<\/p>\n<p>  &#8220;If on the other hand, it is held that<br \/>\nthe order passed by the Chief Justice under<br \/>\nSection 11(6) is administrative in nature,<br \/>\nthen in such an event in a case where the<br \/>\nlearned Chief Justice or his nominee refuses<br \/>\nerroneously to make an appointment then an<br \/>\nintervention should be possible by a Court in<br \/>\nthe same way as an intervention is possible<br \/>\nagainst an administrative order of the<br \/>\nexecutive. In other words, it would be a case<br \/>\nof non-performance of the duty by the Chief<br \/>\nJustice or his nominee, and therefore, a<br \/>\nmandamus would life. If such an<br \/>\ninterpretation is given with regard to the<br \/>\ncharacter of the order that has been passed<br \/>\nunder Section 11(6) then in the event an<br \/>\norder of refusal is passed under Section 11(6)<br \/>\nit could be remedied by issuance of a<br \/>\nmandamus. We are persuaded to accept the<br \/>\nsecond alternative in as much as in such an<br \/>\neven there would not be inordinate delay in<br \/>\nsetting arbitral process in motion. But, as<br \/>\nhas been explained earlier in the earlier part<br \/>\nof this Judgment, the duty of the Chief<br \/>\nJustice or his nominee being to set the<br \/>\narbitral process in motion, it is expected that<br \/>\ninvariably the Chief Justice or his nominee<br \/>\nwould make an appointment of arbitrator or<br \/>\nso that the arbitral proceeding would start as<br \/>\nexpeditiously as possible and the dispute<br \/>\nitself could be resolved and the objective of<br \/>\nthe Act can be achieved.\n<\/p>\n<p> 18. However, we may notice that the correctness of the decision in Konkan<br \/>\nRailway Corporation Ltd. and Ors. (Supra) was doubted in   <a href=\"\/doc\/202973\/\">Konkan Railway Corporation<br \/>\nLtd. and Anr. v. Rani Construction Pvt. Ltd.<\/a>  2002 (1) SCALE 465, wherein the Constitution Bench of the<br \/>\nApex Court by a judgment dated 30.1.2000 held:-\n<\/p>\n<p> &#8220;&#8230; There is nothing in Section 11 that requires the<br \/>\nparty other than the party making the request to be noticed.<br \/>\nIt does not contemplate a response from that other party. It<br \/>\ndoes not contemplate a decision by the Chief Justice or his<br \/>\ndesignate on any controversy that the other party may raise,<br \/>\neven in regard to its failure to appoint an arbitrator within<br \/>\nhe period of thirty days. That the Chief Justice or his<br \/>\ndesignate has to make the nomination of an arbitrator only<br \/>\nif the period of thirty days is over does not lead to the<br \/>\nconclusion that the decision to nominate is adjudicatory. In<br \/>\nits request to the Chief Justice to make the appointment the<br \/>\nparty would aver that this period has passed and, ordinarily,<br \/>\ncorrespondence between the parties would be annexed to<br \/>\nbear this out. This is all that the Chief Justice or his<br \/>\ndesignate has to see. That the Chief Justice or his designate<br \/>\nhas to take into account the qualifications required of the<br \/>\narbitrator by the agreement between the parties (which,<br \/>\nordinarily, would also be annexed to the request) and other<br \/>\nconsiderations likely to secure the nomination of an<br \/>\nindependent and impartial arbitrator also cannot lead to the<br \/>\nconclusion that the Chief Justice or his designate is<br \/>\nrequired to perform an adjudicatory function. That the<br \/>\nword &#8216;decision&#8217; is used in the matter of the request by a<br \/>\nparty to nominate an arbitrator does not of itself mean that<br \/>\nan adjudicatory decision is contemplated.\n<\/p>\n<p> As we see it, the only function of the Chief Justice<br \/>\nor his designate under Section 11 is to fill the gap left by a<br \/>\nparty to the arbitration agreement or by the two arbitrators<br \/>\nappointed by the parties and nominate an arbitrator. This is<br \/>\nto enable the arbitral tribunal to be expeditiously<br \/>\nconstituted and the arbitration proceedings to commence.<br \/>\nThe function has been left to the Chief Justice or his<br \/>\ndesignate advisedly, with a view to ensure that the<br \/>\nnomination of the arbitrator is made by a person occupying<br \/>\nhigh judicial office or his designate, who would take due<br \/>\ncare to see that a competent, independent and impartial<br \/>\narbitrator is nominated.\n<\/p>\n<p> It might be that though the Chief Justice or his<br \/>\ndesignate might have taken all due care to nominate an<br \/>\nindependent and impartial arbitrator, a party in a given case<br \/>\nmay have justifiable doubts about that arbitrator&#8217;s<br \/>\nindependence or impartiality. In that event it would be<br \/>\nopen to that party to challenge the arbitrator under Section<br \/>\n12, adopting the procedure under Section 13. There is no<br \/>\nreason whatever to conclude that the grounds for challenge<br \/>\nunder Section 13 are not available only because the<br \/>\narbitrator has been nominated by the Chief Justice or his<br \/>\ndesignate under Section 11.\n<\/p>\n<p> It might also be that in a given case the Chief<br \/>\nJustice or his designate may have nominated an arbitrator<br \/>\nalthough the period of thirty days had not expired. If so,<br \/>\nthe arbitral tribunal would have been improperly<br \/>\nconstituted and be without jurisdiction. It would then be<br \/>\nopen to the aggrieved party to require the arbitral tribunal<br \/>\nto rule on its jurisdiction. Section 16 provides for this. It<br \/>\nstates that the arbitral tribunal may rule on its own<br \/>\njurisdiction. That the arbitral tribunal may rule &#8220;on any<br \/>\nobjections with respect to the existence or validity of the<br \/>\narbitration agreement&#8221; shows that the arbitral tribunal&#8217;s<br \/>\nauthority under Section 16 is not confined to the width of<br \/>\nits jurisdiction, as was submitted by learned counsel for the<br \/>\nappellants, but goes to the very root of its jurisdiction.<br \/>\nThere would, therefore, be no impediment in contending<br \/>\nbefore the arbitral tribunal that it had been wrongly<br \/>\nconstituted by reason of the fact that the Chief Justice or his<br \/>\ndesignate had nominated an arbitrator although the period<br \/>\nof thirty days had not expired and that, therefore, it had no<br \/>\njurisdiction.\n<\/p>\n<p> The schemes made by the Chief Justice under<br \/>\nSection 11 cannot govern the interpretation of Section 11.<br \/>\nIf the schemes, as drawn, go beyond the terms of Section<br \/>\n11 they are bad and have to be amended. To the extent that<br \/>\nthe appointment of Arbitrators by the Chief Justice of India<br \/>\nScheme, 1996, goes beyond Section 11 by requiring, in<br \/>\nClause 7, the service of a notice upon the other party to the<br \/>\narbitration agreement to show cause why the nomination of<br \/>\nan arbitrator, as requested, should not be made, it is bad and<br \/>\nmust be amended. The other party needs to be given notice<br \/>\nof the request only so that it may know of it and it may, if it<br \/>\nso chooses, assist the Chief Justice or his designate in the<br \/>\nnomination of an arbitrator.\n<\/p>\n<p> In conclusion, we hold that the order of the chief<br \/>\nJustice or his designate under Section 11 nominating an<br \/>\narbitrator is not an adjudicatory order and the Chief Justice<br \/>\nor his designate is not a tribunal. Such an order cannot<br \/>\nproperly be made the subject of a petition for special leave<br \/>\nto appeal under Article 136. The decision of the three<br \/>\nJudge Bench in   <a href=\"\/doc\/1752565\/\">Konkan Railway Corporation Ltd. and Ors.<br \/>\nv. Mehul Construction Co.<\/a>  is affirmed.\n<\/p>\n<p> &#8230;..\n<\/p>\n<p> In the result, the appeals are dismissed. No order as<br \/>\nto costs.&#8221;\n<\/p>\n<p> See also  <a href=\"\/doc\/413018\/\">Narayan Prasad Lohia v. Nijunj Kumar Lohia and Ors.<\/a>  2002 (2) SCALE 232.\n<\/p>\n<p>19. In this view of the matter, the writ petition must be held to be<br \/>\nmaintainable.\n<\/p>\n<p> 20. However, the learned counsel appearing on behalf of the respondent<br \/>\nappears to be correct to the effect that Section 11(6) of the Act in this case would not<br \/>\napply.\n<\/p>\n<p> 21. <a href=\"\/doc\/1847461\/\">In  Shetty&#8217;s Constructions Co. Pvt. Ltd. v. Konkan Railway Construction and<br \/>\nAnr.<\/a>  , the Apex Court held as under:-\n<\/p>\n<p>  &#8220;4. A mere look at Sub-section (2)(a) of the Section 85<br \/>\nshows that despite the repeal of &#8220;Arbitration Act, 1940&#8243;, the<br \/>\nprovisions of the said enactment shall be applicable in<br \/>\nrelation to arbitration proceedings which have commenced<br \/>\nprior to the coming into force of the new Act. The new Act<br \/>\ncame into force on 26-1-1996. The question therefore,<br \/>\narises whether on that date the arbitration proceedings in the<br \/>\npresent four suits had commenced or not. For resolving this<br \/>\ncontroversy we may turn to Section 21 of the new Act which<br \/>\nlays down that unless otherwise agreed to between the<br \/>\nparties, the arbitration suit in respect of arbitration dispute<br \/>\ncommenced on the date on which the request for referring<br \/>\nthe dispute for arbitration is received by the respondents.<br \/>\nTherefore, it must be found out whether the request by the<br \/>\npetitioner for referring the disputes for arbitration were<br \/>\nmoved for consideration of the respondents on and after 26-1-1996<br \/>\nor prior thereto. If such requests were made prior to<br \/>\nthat date, then on a conjoint reading of Section 21 and<br \/>\nSection 85(2)(a) of the new Act, it must be held that these<br \/>\nproceedings will be governed by the old Act. As seen from<br \/>\nthe afore-noted factual matrix, it at once becomes obvious<br \/>\nthat the demand for referring the disputes for arbitration was<br \/>\nmade by the petitioners in all these cases months before 26-1-1996, in March and April 1995 and in fact thereafter all<br \/>\nthe four arbitration suits were filed on 24.8.1995. These<br \/>\nsuits were obviously filed prior to 26-1-1996 and hence they<br \/>\nhad to be decided under the old Act of 1940. This<br \/>\npreliminary objection, therefore, is answered by holding that<br \/>\nthese four suits will be governed by the Arbitration Act,<br \/>\n1940 and that is how the High Court in the impugned<br \/>\njudgments has impliedly treated them.&#8221;\n<\/p>\n<p> 22. <a href=\"\/doc\/1421422\/\">In  Asia Resorts Ltd. v. Usha Breco Ltd.<\/a>  , the Apex Court held that the<br \/>\napplication under Section 20 of 1940 Act should have been filed within 3 years of the<br \/>\nreceipt of the reply to notice.\n<\/p>\n<p> 23. However, we may notice that recently in <a href=\"\/doc\/487135\/\">Union of India v. Popular<br \/>\nConstruction Co.<\/a> , the Apex Court has held that the Arbitration and Conciliation Act,<br \/>\n1966 is a special law in terms of Section 29(2) of the Limitation Act, 1963 providing a<br \/>\nlimitation period different from that prescribed under the Limitation Act.\n<\/p>\n<p> 24. In this view of the matter, we are of the opinion that the matter should be<br \/>\nconsidered afresh by an appropriate Bench treating the application to be under Section 20<br \/>\nof 1940 Act for passing appropriate order(s).\n<\/p>\n<p> 25. Having regard to the fats and circumstances of this case, we would<br \/>\nrequest the appropriate Bench to consider the desirability of disposing of the matter at an<br \/>\nearly date.\n<\/p>\n<p> 26. This writ petition is disposed of accordingly without any orders as to cost.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Delhi High Court Ashi (P) Limited vs Union Of India (Uoi) (Western &#8230; on 16 March, 2002 Author: S Sinha Bench: S Sinha, A Sikri JUDGMENT S.B. Sinha, C.J. 1. The petitioner herein in response to a tender floated by the respondents for manufacture and supply of 2,50,000 pre-stressed mono block concrete sleepers submitted its [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,8],"tags":[],"class_list":["post-102556","post","type-post","status-publish","format-standard","hentry","category-delhi-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Ashi (P) Limited vs Union Of India (Uoi) (Western ... on 16 March, 2002 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/ashi-p-limited-vs-union-of-india-uoi-western-on-16-march-2002\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ashi (P) Limited vs Union Of India (Uoi) (Western ... on 16 March, 2002 - Free Judgements of Supreme Court &amp; 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