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M/S Batliboi Limited vs M/S National Engineers on 21 August, 2023

                                                               1

                                         IN THE SUPREME COURT OF INDIA

                                         CIVIL APPELLATE JURISDICTION

                                       CIVIL APPEAL NO.        OF 2023
                                  (arising out of SLP(C) No. 7224 of 2021)


     M/S. BATLIBOI LIMITED                                                          APPELLANT(S)

                                                              VERSUS

     M/S. NATIONAL ENGINEERS                                                        RESPONDENT(S)


                                                       O R D E R

Leave granted.

In our opinion, the impugned judgment is unsustainable, as the application/petition under Section 11 of the Arbitration and Conciliation Act, 19961, relates to disputes arising pursuant to the purchase order dated 13.07.1995 placed by the respondent – M/s. National Engineers, is stale and clearly barred by limitation.

The respondent - M/s. National Engineers, pursuant to the purchase order dated 13.07.1995, had paid two amounts of Rs.2,25,000/- (Rupees two lakhs twenty-five thousand only) and Rs.7,35,000/- (Rupees seven lakhs thirty-five thousand only) in the years 1995 and 1996 respectively, for supply of a grinding machine. It is the case of the respondent - M/s. National Engineers that the grinding machine was not supplied.

The respondent - M/s. National Engineers invoked the Signature Not Verified Digitally signed by arbitration clause by way of notice dated 31.01.2017. Subsequently, Deepak Guglani Date: 2023.08.22 18:23:28 IST Reason: the application/petition under Section 11 of the Act was filed on 1 For short, “the Act”.

21.04.2017.

We may also record that the respondent - M/s. National Engineers had earlier preferred a consumer complaint in the year 1996, which was dismissed by the State Consumer Disputes Redressal Commission, Rajasthan, Jaipur, on 09.05.2002 on the ground of lack of subject matter jurisdiction. There is no explanation for the inaction between 2002 to 2017, of nearly fifteen years. Dead and stale claims, when the delay is completely unexplained and stark, merit dismissal of the petition at the threshold.

In view of the aforesaid, we set aside the impugned judgment dated 09.03.2021 and, accordingly, the application under Section 11 of the Act will be treated as dismissed.

The appeal is allowed in the aforesaid terms. No order as to costs.

Pending application(s), if any, shall stand disposed of.

..................J. (SANJIV KHANNA) ..................J. (S.V.N. BHATTI) NEW DELHI;

AUGUST 21, 2023.

ITEM NO.50                    COURT NO.3                   SECTION XV

               S U P R E M E C O U R T O F     I N D I A
                       RECORD OF PROCEEDINGS

Petition for Special Leave to Appeal (C) No. 7224/2021 (Arising out of impugned final judgment and order dated 09-03-2021 in SBAA No. 41/2017 passed by the High Court of Judicature for Rajasthan at Jaipur) M/S. BATLIBOI LIMITED Petitioner(s) VERSUS M/S. NATIONAL ENGINEERS Respondent(s) Date : 21-08-2023 This matter was called on for hearing today. CORAM :

HON'BLE MR. JUSTICE SANJIV KHANNA HON'BLE MR. JUSTICE S.V.N. BHATTI For Petitioner(s) Mr. Ramesh Singh, Sr. Adv. Mr. Akshay Girish Ringe, AOR Mr. Anupam Singh, Adv. For Respondent(s) Mr. Shiv Mangal Sharma, Adv. Mr. Shashank Khurana, Adv. Ms. Shalini Singh, Adv. M/s. Aura & Co., AOR UPON hearing the counsel the Court made the following O R D E R Leave granted.

The appeal is allowed in terms of the signed order.

Pending application(s), if any, shall stand disposed of.

(DEEPAK GUGLANI)                                 (R.S. NARAYANAN)
   AR-cum-PS                                   ASSISTANT REGISTRAR

(signed order is placed on the file)