( 1 ). A short but important question - whether the mandate of an arbitrator terminates on the expiry of the stipulated period for making the award within the meaning of Section 14 of the Arbitration and Conciliation act, 1996? has arisen for determination in this case.

( 2 ) M/s. Shyam Telecom Ltd / petitioner has filed this petition under section 14 (2) of the Arbitration and Conciliation Act, 1996 (to be called as the Act) for declaring that the mandate of the sole Arbitrator has terminated on 14. 11. 200 on the expiry of six months period for making the award mentioned in Clause 3 of Article IV of Divestment Agreement and consequently the arbitration proceedings and the mandate of the Arbitrator had come to an end.

( 3 ) THE relevant facts, in brief, are that the parties had entered into a divestment Agreement in 1997. Clause 3 of Article IV of the Divestment agreement inter-alia contains an Arbitration Agreement for reference of the disputes between the parties through Arbitration. The said clause reads as under: "in the event of any dispute, difference of claim arising out of or in connection with or in relation to this Agreement then as such disputes shall be referable to the sole arbitration of a mutually agreed arbitrator. The arbitrator shall conduct the arbitration in accordance with the provisions of the arbitration and Conciliation Act, 1996 or any statutory modification thereof. The arbitrator shall make and pronounce a reasoned award. The arbitrator shall render his award within a period of 6 months from the date of entering upon reference. The arbitrator shall be entitled to award interest during the pendency of the arbitration and pendente lite any proceedings arising therefrom. The arbitrator shall file his award in the courts at Delhi. The Agreement shall be specifically enforceable, by an injunction, or a claim in damages, or both. "

( 4 ) THE respondent herein had filed an application (AA No. 145/2001) under Section 11 of the Act besides an application (OMP No. 178/2001) under Section 9 of the Act. Vide an order dated 1. 5. 2002, this Court disposed of the said applications and appointed Mr. Justice S. C. Agarwal, (Retd.) Judge of Supreme Court of India, as the Sole Arbitrator and referred the disputes arising between the parties for adjudication and decision. The order also directed that the Arbitrator shall enter upon the reference and decide all the issues including those which are raised by the parties in the said application in accordance with law and shall give his award as expeditiously as possible, preferably within a period of four months from the date of entering upon the reference.

( 5 ) THE Sole Arbitrator entered upon the reference on 14. 5. 2002 and granted six weeks time to the claimant for filing the statement of claims, three weeks time thereafter for filing the statement of defence and rejoinder within two weeks thereafter and adjourned the matter to 3. 8. 2002. The statement of claim was, however, filed only on 27. 7. 2002. On 3. 8. 2002 the Arbitrator condoned the delay in filing the claim and granted time to the petitioner to file the statement of defence before 19. 8. 2002 and rejoinder before 3. 9. 2002 and documents by 6. 9. 2002 and adjourned the matter to 9. 9. 2002. Rejoinder and reply to counter claim was filed by the claimant on 8. 10. 2002 and on 10. 10. 2002. The Arbitrator granted 10 days time to the respondent for filing rejoinder to the reply and counter claim. On 18. 11. 2002 the petitioner herein filed an application for dismissal of the claim on the ground of non-production of original MOU and the matter was adjourned to 21. 12. 2002. On 4. 1. 2003, two applications one by the petitioner for dismissal of the claim and other by the respondent for production of copy of MOU were decided and the matter was adjourned to 20. 1. 2003 for finalising points for determination. On 20. 1. 2003 points for determination were finalised and proceedings adjourned to 15. 3