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Meenakshi vs. Indian Oil Corporation Limited and Anr

Arbitration Petition · 2026:DHC:8246Decided 22 Sept 2026New Delhi Bench
ARB.P. 1545/2026CNR: DLHC010404932026
Justice Om Prakash Shukla

Background

The petitioner had been appointed a distributor of Indian Oil Corporation under a 1996 agreement, and challenged the subsequent termination of that distributorship. IOCL opposed the petition on the ground that it was filed too late (barred by limitation).

Decision Breakdown

The Court held that at the arbitrator-appointment stage, it need only confirm the existence of a valid arbitration clause (which it found present, in Clause 37 of the distributorship agreement): questions like limitation are left for the arbitrator to decide. It accordingly appointed a sole arbitrator, expressly permitting IOCL to raise its limitation, arbitrability and jurisdiction objections before that arbitrator.

Lesson Learnt

Even a claim that looks time-barred on its face doesn't stop a court from referring a dispute to arbitration: objections like limitation are for the arbitrator, not the court, to rule on at the appointment stage.

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