IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 944 OF 2008

P. SHAILAJA & ORS. .......APPELLANT(S)  

Versus

M. NARENDER REDDY & ORS. .....RESPONDENT(S)

O R D E R

We  have  heard  learned  counsel  for  the  parties.   We  observe  from  the

impugned order of the High Court dated 29/9/2006 that the Hon'ble Judge has given

findings that the arbitration agreement was not legally valid, that the claim was stale

and time barred.  We are of the opinion that these findings are on the merits of the case

and it was not open to the Court to decide this issue as these matters were to be left for

the decision of the arbitrator.   

In this view of the mater, we are of the opinion that the impugned order has

to be set aside.  It is, accordingly, set aside.  We also request Hon'ble Mr. Justice B.P.

Jeevan Reddy,  a retired Judge of this Court,  to  be the sole arbitrator to settle the

disputes between the parties.  We clarify that the expenses for the arbitration will be

borne by the appellant.  We further request the arbitrator to take a decision in the

matter as expeditiously as possible.  All contentions including the question of limitation

and as to the stale nature of the claim will be open before the arbitrator.

The appeal is allowed in the above terms.  No costs.

   ...........................J.

  ( HARJIT SINGH BEDI )

New Delhi;    ...........................J. April 30, 2009.           ( B. SUDERSHAN REDDY )