VidhiSangh

Supreme Court of India · 09/07/2024

ELFIT ARABIA & ANR. versus CONCEPT HOTEL BARONS LIMITED & ORS.

[2024] 7 S.C.R. 1230 · 2024 INSC 536

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Summary

Arbitrator-appointment petitions were dismissed because the undisputed chronology showed that arbitration was invoked eleven years after the cause of action arose. Applying the referral-stage principles stated in this order, the Court treated the claims as plainly time-barred. Pending cheque-dishonour proceedings did not create a continuing cause of action for arbitration, since the two proceedings were independent.

Issues

  1. Whether the uncontested chronology established an ex facie time-barred claim warranting refusal to appoint an arbitrator.
  2. Whether Section 138 proceedings kept the arbitration cause of action alive.

Provisions considered

Held

Result

Both arbitration petitions dismissed as concerning ex facie time-barred claims; pending applications disposed of.

Judgment PDF: Supreme Court of India, [2024] 7 S.C.R. 1230.