Section 11 Application – Even Delay of 15 days is fatal
By the notice dated 30.6.2021, the Development Agreement was terminated.
By the notice dated 12.8.2021, the arbitration was invoked.
However, on 28.2.2025, section 11 application for appointment of arbitrator was filed.
HELD that there was delay of 15 days in filing application after excluding the Covid period of limitation. The applicant was vigilance enough even during Covid period to be aware of his cause of action and issued the arbitration invocation notice. The applicant could have equally been digiligent about coming to Section 11 Court and that too, when long period till 28.2.2022 was excluded. The applicant did not take any protective legal action and meandered over his purported rights well after termination of the Development Agreement. The applicant ought to have been conscious of rights after suspension of limitation was filed to take next step of filing section 11 application.
Therefore, without meaning to ignore the period of entitlement that became available in law by deferring the limitation period, the delay of 15 days no long appears to be minor but significant delay. The applicant was computing the period and waited till the last minute to file the same to have a bargaining chip rather than being serious about pursuing his rights – potentially a means of putting a foot in the door to see whether that could lead to any re-negotiation or any bargain that may be available, for the perceived nuisance of litigation.
Judgment dated 30.6.2025 of the Bombay High Court in Commercial Arbitration Application (L) No.7802 of 2025 of Bali Edifices LLP Vs. New Lourdes Chambers Cooperative Housing Society Ltd.
