Ace Pipeline Contracts Private Limited vs Bharat Petroleum Corporation Limited on 4 April, 2007
In Ace Pipeline Contracts Private Limited v. Bharat
Petroleum Corporation Limited (2007 (2) ARBLR49 (SC); Datar
Switchgears Ltd., (supra), it has been held by the Hon'ble Supreme
Court that in cases arising under Section 11(6) of the Act, if the
opposite party has not made an appointment within 30 days of
demand, the right to make appointment is not forfeited but continues,
but an appointment has to be made before the former files application
under Section 11 of the Act, seeking appointment of a arbitrator and
only then the right of the opposite party ceases. In the instant, as
already observed supra, the 30 days period would start from the date of
failure of amicable settlement i.e., from 03.09.2014, the date on which,
the respondent addressed letter stating so to the applicant and not
from 28.07.2014 and 11.08.2014, as alleged by the applicant.