SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2019 Supreme(Bom) 1201

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
G.S. KULKARNI, J.
Cabra Instalaciones Y Servicios, S.A - Petitioner
Versus
Maharashtra State Electricity Distribution Company Limited - Respondent
Commercial Arbitration Petition (L) No. 814 to 818 of 2019
Decided On : 29-07-2019

Advocates Appeared:
For the Appellant : Mr. Arjun Sreenivas with Vineet Bhansali I/b. Cyril Amarchand Mangaldas.
For the Respondent: Mr. Rahul Sinha I/b. DSK Legal.

Exclusive jurisdiction of the Supreme Court for extending the mandate of an arbitral tribunal in international commercial arbitrations under Section 29A of the Act.

Headnote:

Arbitration - Extension of Arbitral Tribunal's Mandate - Arbitration and Conciliation Act,1996, Section 29A

Fact of the Case:

The petitioner sought an extension of the arbitral tribunal's mandate to conclude the arbitral proceedings and make an award. The arbitral tribunal was appointed by the Supreme Court for an international commercial arbitration.

Finding of the Court:

The court found that it lacked jurisdiction to entertain the application under Section 29A of the Act, as the arbitral tribunal was appointed by the Supreme Court for an international commercial arbitration. The petitioner was given liberty to approach the Supreme Court for the extension of the arbitral tribunal's mandate.

Issues: Jurisdiction of the High Court under Section 29A for an international commercial arbitration

Ratio Decidendi: The High Court lacks jurisdiction to entertain applications under Section 29A of the Act for an international commercial arbitration when the arbitral tribunal was appointed by the Supreme Court. The exclusive jurisdiction lies with the Supreme Court.

Final Decision: The petitions were disposed of, with the petitioner given liberty to approach the Supreme Court for the extension of the arbitral tribunal's mandate.

ORDER :

1. These are applications filed under Section 29A of the Arbitration and Conciliation Act,1996 (for short 'the Act') whereby the petitioner has prayed that the mandate of the arbitral tribunal be extended for a period of six months, for the arbitral tribunal to conclude the arbitral proceedings and make an award. The following are the prayers as made in the petitions:

“(a) that this Hon'ble Court be pleased to extend the time period for making the award in the arbitration proceedings pending between the Petitioner and Respondent before the learned Sole Arbitrator Mr.Justice F.I.Rebello (Retd.) by a period of 6 (six) months or for such other period, from August 20, 2019, as this Hon'ble Court deems fit; and

(b) for such other and further reliefs as this Hon'ble Court deems just and proper in the nature and circumstances of the present case.”

2. At the outset it may be observed that the arbitration in question is an international commercial arbitration. The Supreme Court by an order dated 9 August 2017 passed under Section 11(5) of the Act was pleased to appoint an arbitral tribunal. The said order reads as under:

“1. We have heard the learned Senior Counsel appearing for the parties.

2. This is an application under Section 11(5) of the Arbitration and Conciliation Act,1996 to appoint an Arbitrator. In the contract between the parties, the arbitration clause, being Clause 17, is set out as follows:

“17. Arbitration:

(a) All disputes or difference between the parties under or in connection with this Agreement or any breach thereof shall be sought to be referred to the Chief Engineer (Infrastructure Plan).

(b) If such differences or disputes as between the parties cannot be settled through Chief Engineer (Infrastructure Plan) within 180 days of such disputes, they shall be settled by arbitration. The arbitration shall be conducted in accordance with the provisions of the Arbitration and Conciliation Act,1996 and any statutory modification thereof from time to time.

(c) The language of the arbitration shall be English and the place of arbitration shall be Mumbai.

(d) Notwithstanding the existence of any dispute referred to arbitration, the parties shall continue to perform their obligations under this Agreement.”

3. Learned Senior Counsel appearing on behalf of the respondent states that an arbitration can take place only if disputes and differences between the parties cannot be settled through the Chief Engineer and it is only after 180 days of such disputes not being settled, that arbitration can be invoked.

4. We find that by a letter dated 08.06.2016, the petitioner wrote to the Chief Engineer under the Clause asking that this was by way of a final attempt to achieve amicable settlement of the disputes set out in the letter. It appears that in response to the said letter, the Chief Engineer, by a letter dated 17.06.2016 called a meeting, which was held on 22.06.2016, after which nothing had taken place. Inasmuch as nothing has happened thereafter, and more than 180 days have gone since June,2016, according to us, an Arbitrator needs to be appointed to resolve the disputes between the parties. We appoint Hon'ble Mr.Justice F.I.Rebello, retired Judge of the Bombay High Court as Sole Arbitrator to resolve the disputes between the parties.

5. Accordingly, the Arbitration Petitions are disposed of.”

3. The arbitral tribunal could not conclude the arbitral proceedings within the time limits prescribed under Section 29A of the Act. It appears that the petitioner had earlier approached this Court by filing Commercial Arbitration Petition (L) No.30 of 2019 seeking extension of the mandate of the arbitral tribunal for six months. A learned Single Judge of this Court by an order dated 14 January 2019 was pleased to extend the mandate of the arbitral tribunal by six months as prayed in the said application. The said order passed by this Court (B.P.Colabawalla, J.) reads thus:

“This Arbitration Petition has been filed under Section 29A of the Arbit

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon telegram-icon
whatsapp-icon Back to top