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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SOMASEKHAR SUNDARESAN, J.
M/s Rural Infrastructure Development Private Limited – Appellant
Versus
The Land Acquisition Officer and Sub-Divisional Officer, Thane – Respondent
Arbitration Petition Nos. 238, 239, 240 of 2025
Decided On : 09-12-2025
| Table of Content |
|---|
| 1. invocation of arbitration due to procedural delays. (Para 1 , 2) |
| 2. details of prior arbitration proceedings and compensation. (Para 3 , 4 , 5 , 6) |
| 3. filing of petitions for substitution of arbitrators. (Para 7 , 8) |
| 4. arguments for and against court's jurisdiction and authority. (Para 9 , 10 , 11) |
| 5. analysis on the progress of arbitration proceedings. (Para 12 , 13 , 14 , 15 , 16) |
| 6. exploring the applicability of the arbitration act provisions. (Para 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24) |
| 7. limits of section 11 and relevance to current arbitration. (Para 25 , 26 , 27 , 28) |
| 8. impact of section 29a on arbitrators' mandate. (Para 29 , 30 , 31 , 32) |
| 9. interplay of section 29a with state highways act. (Para 33 , 34 , 35) |
| 10. need for timely resolution under arbitration framework. (Para 36 , 37 , 38 , 39 , 40) |
| 11. critique of delays in arbitration process. (Para 41 , 42 , 43 , 44) |
| 12. legal jurisdiction and seat of arbitration. (Para 45 , 46) |
| 13. clarification of courts' jurisdiction based on arbitration agreement. (Para 47 , 48 , 49 , 50) |
| 14. confirmed seat of arbitration and related jurisdiction issues. (Para 51 , 52 , 53 , 54) |
| 15. court’s power to substitute arbitrator under section 29a. (Para 55 , 56 , 57 , 58) |
| 16. final summary of judicial findings and order. (Para 59 , 60 , 61 , 62) |
JUDGMENT :
SOMASEKHAR SUNDARESAN, J.
1. All the captioned proceedings relate to the invocation of Section 29A of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”) on the premise that the mandate of the Arbitral Tribunal has expired with no sign of the arbitration being conducted and thereby seeking substitution of the Arbitral Tribunal, invoking Section 29A(6) read with Section 11 of the Arbitration Act. By consent of the parties the Arbitration Petition No. 238 of 2025 is taken up as the lead Petition. Learned Advocates for the parties agree that disposal of this Petition would be instructive for disposal of all the captioned Petitions.
2. How parties to a deemed arbitration agreement created under statute, could ensure that the arbitration actually takes place when the statutory authority fails to appoint a functional arbitrator, is the issue that has arisen for consideration in the captioned Petition. Evidently, no Arbitral Award has been passed within the statutory timeframe contemplated under Section 29A of the Arbitration Act.
3. The Petitioner is the owner of land bearing Gat No. 222/A, 222A/2 and 222A/3 admeasuring 14,608 square metres in Village Dalkhan, Taluka Shahapur, District Thane. The land was acquired pursuant to land acquisition proceedings under the Maharashtra Highways Act, 1955 (“State Highways Act”). The Divisional Commissioner, Konkan had been designated as an arbitrator under Section 19-B(8) of the State Highways Act in relation to disputes relating to the compensation amount awarded not being acceptable to land-losers.
4. The Competent Authority passed an award granting compensation @ Rs.510/- per square metre with the total amount of compensation granted being Rs.2.91 Crores. Since the Divisional Commissioner, Konkan has been designated as an arbitrator for such disputes, in April 2021, the Petitioner filed an Arbitration Application No. 14580 of 2021 seeking enhanced compensation at the rate of Rs.13,170/- per square metre citing prevailing market price and solatium of 100% of the compensation amount (“Application 14580”). On April 28, 2021, the Competent Authority filed a statement of defence and written statement before the Arbitral Tribunal in Application 14580. On May 5, 2021, the Petitioner filed a rejoinder in the matter. Therefore, pleadings can be said to have been completed by May 5, 2021.
5. No Arbitral Award was passed in Application 14580 within the statutory deadline applicable under the Arbitration Act. On December 12, 2023, the Government of Maharashtra, without any notice, consent, and without approval of extension of mandate of the arbitrator or change of arbitrator, changed the arbitrator
The court affirmed that when arbitration fails to occur within statutory timelines, the court has the authority to substitute the arbitrator under Section 29A of the Arbitration and Conciliation Act,....
The High Court has jurisdiction to extend the mandate of arbitrators appointed under Section 11(6) of the Arbitration Act, ensuring adherence to party autonomy and minimal court intervention.
The High Court has jurisdiction to extend time for arbitration proceedings, provided the arbitrator was appointed by it, reflecting legislative intent requiring contextual interpretation of 'Court' i....
The High Court has exclusive authority to extend the mandate of an arbitrator appointed under Section 11 of the Arbitration & Conciliation Act, 1996, regardless of the pecuniary value of the claim.
The main legal point established in the judgment is that the District Court had jurisdiction to substitute the Arbitrator under Section 29-A of the Arbitration and Conciliation Act, 1996 in the absen....
The court affirmed that the term 'Court' under Section 29A of the Arbitration Act is exhaustively defined, limiting powers to specified civil courts, with definitive precedents clarifying that High C....
Section 29A of Arbitration Act inapplicable to arbitrations under Section 3G(5) of National Highways Act as special code; Central Government exclusive appointment overrides court extension/substituti....
The court clarified that applications for extending the mandate of an arbitral tribunal under Section 29A must be filed before the Principal Civil Court of original jurisdiction, not the High Court.
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