Arbitration limitation and disputed settlement objections did not bar appointment of a sole arbitrator under the Act.

Receipt of a notice invoking arbitration starts arbitral proceedings under Section 21 of the Arbitration and Conciliation Act, 1996, so limitation stops on that receipt and a later Section 11(6) petition is not time-barred if the demand was made within three years of accrual. An objection based on alleged accord and satisfaction failed because the MOU was disputed and the parties' correspondence showed an unconditional agreement to arbitrate; that correspondence also satisfied the requirements of an arbitration agreement under Section 7(4)(a). The court therefore rejected the objections and appointed a sole arbitrator.

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Issues: Whether the application under Section 11(6) of the Arbitration and Conciliation Act, 1996 was barred by limitation and whether the disputes were still referable to arbitration despite the objection based on alleged accord and satisfaction.

Analysis: The demand and invocation of arbitration were made within three years of accrual of the dispute. Under Section 21 of the Arbitration and Conciliation Act, 1996, arbitral proceedings commence when the request for reference is received by the respondent, and limitation stops on such receipt. The subsequent filing of the Section 11 application did not render the claim time-barred. The objection founded on the alleged MOU was not sufficient to defeat reference because its execution was disputed, and in any event the parties' correspondence showed an unconditional agreement to resolve the disputes through arbitration. That correspondence also satisfied Section 7(4)(a) of the Arbitration and Conciliation Act, 1996.

Conclusion: The objections were rejected and a sole arbitrator was appointed. The application succeeded in favour of the applicant.

Ratio Decidendi: Receipt of a notice invoking arbitration commences arbitral proceedings under Section 21 of the Arbitration and Conciliation Act, 1996, and where the parties' correspondence evidences an arbitration agreement under Section 7(4)(a), the court may appoint an arbitrator under Section 11(6) despite objections of limitation or alleged settlement.

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