Mr. Alok Tripathi, Adv v. EXTREME ENGINEERING PVT. LTD

("Disputes") arising out of this Agrement between the Parties or arising out of or relating to or in connection with this Agreement and the performance or non-performance of the rights and obligations set forth herein or the breach, termination or invalidity thereof shall be referred for Arbitration in terms of the Arbitration and Conciliation Act, 1996.prior to submitting the dusputes to arbitration the parties shall mutually resolve to settle the Disputes through mutual negotiation and discussions. In the event that the said Disputes are not settled within 30 days of the This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 08/04/2025 at 11:58:09 arising of the Disputes, the same shall finally be settled and determined by arbitration to be to be conducted by a sole arbitrator in accordance with the Arbitration and Conciliation Act, 1996. The place of arbitration shall be Delhi and the language used in the Arbitral proceedings shall be English.”

3. The brief facts of the case are that a Channel Partner Agreement dated

20.12.2016 was executed between the parties for rollout, operation and maintenance of voice and broadband dated over FTTH-CPE on a revenue sharing basis for Moradabad UP (West) Zone.

4. The respondent is a contractor for BSNL who had sub-contracted some part of the work to the petitioner.

5. Thereafter, the petitioner has provided its services under Agreement.

8. Subsequently, the respondent vide letter dated 16.02.2018 directed the petitioner to stop the work. On 11.05.2018, the petitioner raised invoices for its services. Since there were disputes between the parties, the petitioner invoked arbitration vide legal notice dated 13.03.2024 under Section 21 of the Act.

9. Ms. Majid, learned counsel appearing on behalf of the respondent, states that since the work was suspended on 16.02.2018 and the petitioner undertook no further work, the notice invoking the arbitration clause vide legal notice dated 13.03.2024 is barred by limitation.

10. I have heard learned counsel for the parties and perused the material on record. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 08/04/2025 at 11:58:09

11. In the present case, the Clause No. 14.2 of the Agreement reads as under: “14.2 Upon receipt of any notice of termination of Agreement the CHANNEL PARTNER shall conduct all operations until the effective date of termination mentioned in such notice in the manner which is consistent with the obligations of the CHANNEL PARTNER hereunder and the CHANNEL PARTNER shall not prejudice the reputation or goodwill of EXTREME OR BSNL and the interests of subscribers in any manner whatsoever.”

12. The Hon’ble Supreme Court in Arif Azim Co. Ltd. v. Aptech Ltd., (2024) 5 SCC 313, observed as under: “55. Dr P.C. Markanda in Law Pertaining to Arbitration and Conciliation, 9th Edn., LexisNexis, pp. 550-51 has discussed on the applicability of law of limitation to a petition under Section 11(6) of the 1996 Act as follows: “*** *** *** It would be entirely wrong to mix the two aspects, namely, whether there was any valid claim and secondly the claim to be adjudicated by the arbitrator was barred by time. As for the second matter, it is for the arbitrator to see whether the claim was within limitation or not and the Court should confine itself to see whether the application made to the Court is within limitation. An application made more than three years after the accrual This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 08/04/2025 at 11:58:09 of cause of action is palpably time-barred and liable to be dismissed. Article 137 of the Limitation Act makes it obligatory for claims to be filed within 3 years of the rescission/termination of the contract. The right of action for the department starts from the date when the work is rescinded and not from the date when the balance work is got completed through another agency. *** *** ***” (emphasis supplied)

13. On perusal, the Channel Partner must continue its operations until the specified effective termination date vide the notice of termination of the Agreement.

14. I am of the view that the notice of suspension of work dated 16.02.2018 cannot be termed as the notice of termination as the work is merely suspended and not rescinded by the same.

15. Admittedly, the Agreement has not been terminated by either of the parties till date.

16. Hence, the parties continue to be in a contractual relationship and the amounts due and payable under the Agreement cannot be stated to be barred by limitation and thus, the present petition is not barred by the law of limitation.

17. For the said reasons, the petition is allowed and the following directions are issued:- i) Mr. Harpreet Singh, Adv. (Mob. No. 8860908989) appointed as a Sole Arbitrator to adjudicate the disputes between the parties. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 08/04/2025 at 11:58:09 ii) The arbitration will be held under the aegis of the Delhi International Arbitration Centre, Delhi High Court, Sher Shah Road, New Delhi (“DIAC”). iii) The remuneration of the learned Arbitrator shall be in terms of DIAC (Administrative Cost and Arbitrators’ Fees) Rules,

2018. iv) The learned Arbitrator is requested to furnish a declaration in terms of Section 12 of the Act prior to entering into the reference. v) It is made clear that all the rights and contentions of the parties, including as to the arbitrability of any of the claim, preliminary objection, claims/counter-claims and merits of the dispute of either of the parties, are left open for adjudication by the learned arbitrator. vi) The parties shall approach the learned Arbitrator within two weeks from today.

18. The present petition is disposed of in the aforesaid terms. MARCH 26, 2025/sp JASMEET SINGH, J Click here to check corrigendum, if any This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 08/04/2025 at 11:58:09