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1 - 10 of 13 (0.05 seconds)Section 28 in The Indian Contract Act, 1872 [Entire Act]
Section 11 in The Indian Contract Act, 1872 [Entire Act]
M/S G.S. Express Pvt. Ltd. vs Ntpc Ltd. on 16 August, 2023
In this context, I may also refer to a recent judgment in G.S. Express
Pvt. Ltd., (supra), where relying on the aforesaid judgments, this Court
appointed the Arbitrator holding that Clause 7.3.1 of the Contract to the
extent it limited the period for invoking arbitration to 06 months was
unconscionable and void in light of Section 28(b) of 1872 Act. In light of
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these judgments, this Court is unable to agree with learned counsel for the
Respondent that Petitioner is precluded from invoking the Arbitration
Clause only because it failed to seek invocation within a period of 30 days
from the date of receipt of the decision of DRC. Accordingly, I hold that the
penultimate sub-paragraph of Clause 25 which reads, 'if the Dispute
Redressal Committee (DRC) fails to give his decision within the aforesaid
period or any party is dissatisfied with the decision of Dispute Redressal
Committee (DRC), then either party may within a period of 30 days from the
receipt of the decision of Dispute Redressal Committee (DRC), give notice
to the Chief Engineer for appointment of arbitrator on prescribed proforma
as per Appendix XV, failing which the said decision shall be final, binding
and conclusive and not referable to adjudication by the arbitrator', will not
extinguish the right of the Petitioner to approach this Court under Section 11
of 1996 Act for appointment of an Arbitrator.
Grasim Industries Ltd. vs State Of Kerala on 19 April, 2017
In Grasim Industries Limited v.
State of Kerala, (2018) 14 SCC 265, dealing with a similar issue where the
Respondent declined to refer the matter to arbitration on the ground that
Appellant had not invoked arbitration within the time stipulated in the
Arbitration Agreement. Referring to Section 28(b) of 1872 Act, the Supreme
Court held that the said provision unequivocally provides that an agreement,
which extinguishes the right of a party on expiry of the specified period,
would be void and therefore, even if a restricted period for raising an arbitral
dispute is provided for, the same would be treated as void.
National Highways Authority India vs Mecon-Gea Energy Systems India Ltd Jv on 2 April, 2013
To the same
effect is the decision of this Court in National Highways Authority of India
v. Mecon - Gea Energy Systems India Ltd. JV, 2013 SCC OnLine Del
1273 and relevant passages are as follows:-
National Insurance Co. Ltd vs Sujir Ganesh Nayak & Co. & Anr on 21 March, 1997
42. Before the amendment of Section 28 in 1997, the agreements reducing
the period of limitation were distinguished from those which did not limit
the time within which a party might enforce his rights, but which provided
for a release or forfeiture of rights, if no suit was brought within the
period stipulated in the agreement; and the latter class of agreements,
being outside the scope of the section, were held to be binding between the
parties. Thus, in National Insurance Co. Ltd. v. Sujir Ganesh Nayak & Co.
(AIR 1997 SC 2049), the Supreme Court drew a clear distinction between
an agreement which curtails the period of limitation and an agreement
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which provides for forfeiture or waiver of the right itself, if no action is
commenced within the period stipulated by the agreement. The first was
held to be void as offending Section 28 but, the later was held not falling
within the mischief of Section 28. Thus, it was held that curtailment of the
period of limitation was not permissible in view of Section 28 but
extinction of the right itself, unless exercised within the specified time, was
permissible and can be enforced.
Pandit Construction Company vs Delhi Development Authority And Anr. on 18 July, 2007
LR 272; Pandit
Construction Company v. Delhi Development Authority : 2007 (3) Arb LR
205 (Delhi); and Chander Kant & Co. v. The Vice Chairman, DDA : Arb.
Pet. No. 246 of 2005, decided on 26.05.2009.
M/S. Chander Kant & Co. vs The Vice Chairman, Dda & Ors. on 26 May, 2009
In my view, the decision in Chander Kant & Co. (supra), squarely
covers the objection raised by the respondent in the present petition.
Accordingly, the penultimate sub paragraph of the Arbitration clause
which provides that "if the any contractor(s) does/do not make any
demand for arbitration in respect of any claim (s) in writing within 90
days of receiving the intimation from the MTNL, that the bill is ready for
payment, the claim of the contractor (s) will be demand to have been
waived and absolutely barred and the MTNL shall be discharged and
released of all liabilities under the contract in respect of these claims" is
void.