Arbitration referral and limitation: court should not conduct a detailed inquiry into whether the claim is time-barred at Section 11 stage.

A binding arbitration clause covered disputes arising out of the contract, including claims over non-delivery of flats and car parking spaces and the related refund demand. At the Section 11 referral stage, the HC held that the Court's inquiry was limited and should not involve a detailed evidentiary assessment of limitation; prima facie, later correspondence and subsequent conduct could suggest an extension of time and a fresh cause of action. The objection that the claim was ex facie time-barred was therefore not a ground to refuse reference, and limitation was left for the arbitral tribunal to decide as a preliminary issue.

---

---

Issues: Whether the dispute was covered by the arbitration agreement and whether the Section 11 application could be rejected at the referral stage on the ground that the claim was ex facie barred by limitation or was a dead claim.

Analysis: The agreement contained a binding arbitration clause covering disputes arising out of the contract. The dispute concerned non-delivery of the agreed flats and car parking spaces, followed by an asserted promise to refund the consideration with penalty. On the question of limitation, the referral Court held that it could only undertake a limited enquiry and should not conduct an intricate evidentiary examination into whether the claims were time-barred. The correspondence of 15 December 2020, read with the parties' subsequent conduct, prima facie suggested that the time for performance may have been extended and that a fresh cause of action may have arisen. The Court also held that the issue whether the claim was barred by limitation, including whether the alleged acknowledgement or subsequent events altered the running of time, was better left for the arbitral tribunal.

Conclusion: The dispute was held to be referable to arbitration and the objection of limitation did not justify of reference at the Section 11 stage; the arbitrator was permitted to decide limitation as a preliminary issue.

---