Court Overrules Limitation Objections, Directs Arbitration for Unresolved Conveyance Deed Issues
In a noteworthy decision, the Calcutta High Court has appointed an independent arbitrator to adjudicate the disputes arising from a property transaction dating back to 2007. The decision comes amidst objections concerning the statute of limitations for the claims, with the court clarifying the extent of its jurisdiction under Section 11(6) of the Arbitration and Conciliation Act, 1996.
The case, Bina Daga v. Chitrita Dey and others, involves a contentious agreement for the sale of a flat in Kolkata. The petitioners, Bina Daga and another party, argued that despite paying the full sale consideration and taking possession of the property in 2007, the respondents failed to execute the conveyance deed as per the agreement. The petitioners further alleged that the named arbitrator in the original agreement was ineligible due to prior engagements with the respondents, prompting their request for an independent arbitrator.
The primary legal hurdle addressed by the court was the respondents' claim that the petitioners' demands were time-barred under the Limitation Act, 1963. However, the court, presided over by Justice Gaurang Kanth, emphasized that its role under Section 11(6) is limited to verifying the existence of a valid arbitration agreement and whether the petition for arbitration was filed within the prescribed limitation period of three years.
In delivering the judgment, the court cited the precedent set by the Supreme Court in SBI General Insurance Co. Ltd. v. Krish Spinning, reinforcing that intricate evidentiary inquiries into the limitation of underlying claims fall within the arbitrator's domain, not the court's preliminary jurisdiction.
Justice Kanth determined that all conditions for invoking arbitration were met, including the prima facie existence of a valid arbitration agreement and the timely filing of the petition. Consequently, the court appointed Sounak Bhattacharya as the sole arbitrator, directing that the arbitration proceedings adhere to the provisions of the Arbitration and Conciliation Act, 1996.
The judgment not only sets the stage for resolving this long-standing dispute but also reiterates the judiciary's approach towards arbitration, emphasizing minimal court interference in the arbitration process.
Bottom line:-
Arbitration and Conciliation Act - Referral court's jurisdiction under Section 11(6) limited to prima facie examination of the arbitration agreement and the filing within limitation; intricate evidentiary inquiry into underlying claims' limitation is impermissible.
Statutory provision(s): Arbitration and Conciliation Act, 1996 Sections 11(6), 12(5)
Bina Daga v. Chitrita Dey, (Calcutta) : Law Finder Doc id # 2898587
