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Arbitration application allowed u/s 11(6) of Arbitration and Conciliation Act, 1996. Court's role limited to determining existence of arbitration agreement and not touching merits. Mere failure to pay may not give rise to cause of action, but denial of claim gives rise to dispute. Applicant raised dispute within limitation period after settlement of final bill. Whether claim barred by limitation to be decided by arbitrator u/s 20. Negotiations don't postpone limitation period u/s 43 read with Limitation Act, 1963.
Arbitration application allowed u/s 11(6) of Arbitration and Conciliation Act, 1996. Court's role limited to determining existence of arbitration agreement and not touching merits. Mere failure to pay may not give rise to cause of action, but denial of claim gives rise to dispute. Applicant raised dispute within limitation period after settlement of final bill. Whether claim barred by limitation to be decided by arbitrator u/s 20. Negotiations don't postpone limitation period u/s 43 read with Limitation Act, 1963.
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