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IN THE HIGH COURT OF DELHI AT NEW DELHI
Suresh Kumar Kait, J.
Rail Vikas Nigam Ltd. - Appellant
Versus
Simplex Infrastructures Ltd. - Respondent
O.M.P.(Misc.) (Comm.) 161/2021
Decided On : 24-11-2021
Arbitration and Conciliation Act - Extension of Arbitral Tribunal's Mandate - The court extended the mandate and time of the Arbitral Tribunal up to 31.01.2022 for preparing and pronouncing the Award.
Fact of the Case:
The petitioner, a public sector enterprise, entered into a contract with the respondent. Disputes arose, and the respondent invoked arbitration. The Arbitral Tribunal was constituted, and the statutory time limit for passing the Arbitral Award expired. Due to the Covid pandemic, the hearings were deferred, leading to multiple extensions of the Arbitral Tribunal's mandate.
Finding of the Court:
The court considered the reserved matter for passing of the Arbitral Award and the complexities of the case. It extended the mandate and time of the Arbitral Tribunal up to 31.01.2022 for preparing and pronouncing the Award.
Issues: Extension of Arbitral Tribunal's mandate due to Covid pandemic and complexities of the case.
Ratio Decidendi: The court has the discretion to extend the mandate of the Arbitral Tribunal considering the circumstances, such as the impact of the Covid pandemic and the complexities of the case.
Final Decision: The court extended the mandate and time of the Arbitral Tribunal up to 31.01.2022 for preparing and pronouncing the Award.
JUDGMENT
(Oral)
1. The present petition filed under Section 29 A(4) & (5) of the Arbitration and Conciliation Act, 1996 has been filed seeking extension of mandate of the arbitral tribunal adjudicating the disputes between the parties.
2. Pertinently, petitioner is a public sector enterprise under the Ministry of Railways of the Indian Government, who had entered into a contract for “Construction of Viaduct including related works for 4.78 Kms excluding the station area from Ch.(-)1250 to Ch.4128 between Joka to Behala Chowrasta including approach at Joka-Package 1” with respondent on 28.01.2011. However, certain disputes arose between the parties, consequent thereto, respondent invoked arbitration and the Arbitral Tribunal was constituted on 28.12.2018.
3. It is averred on behalf of petitioner that the statutory time limit of one year for passing the Arbitral expired on 28.12.2019 and consequently, with the consent of both the sides on 09.01.2020, it stood extended for further six months i.e. till 28.06.2020.However, due to Covid pandemic, the hearings had to be deferred and thereby, the Arbitral Tribunal stood extended till 31.10.2020; 31.12.2020 and 30.04.2021.
4. Learned counsel for petitioner submits that matter is reserved for passing of Arbitral Award, however, due to voluminous record and complexities, further extension is sought to enable the Arbitral Tribunal to pronounce the Award.
5. Learned counsel appearing on behalf of respondent has supported the aforesaid submissions made on behalf of the petitioner.
6. Considering that the proceedings and arguments before the Arbitral tribunal have already been concluded, I hereby extend the mandate and time of the Arbitral Tribunal up to 31.01.2022 for preparing and pronouncing the Award.
7. With aforesaid, the present petition is accordingly disposed of.
The court has the discretion to extend the mandate of the Arbitral Tribunal based on the circumstances, such as the impact of the Covid pandemic and the complexities of the case.
The court affirmed that under the Arbitration and Conciliation Act, extensions of time for the arbitral tribunal are valid and can occur through mutual consent in exceptional circumstances.
The court affirmed that extraordinary circumstances, such as a pandemic, can justify extending the mandate of an arbitral tribunal under Section 29 A(4) of the Arbitration and Conciliation Act, 1996.
The court recognized that external factors such as the Covid pandemic can justify the extension of an arbitral tribunal's mandate under Section 29 A (5) of the Arbitration and Conciliation Act, 1996.
The court upheld the extension of the arbitral tribunal's mandate to allow for proper resolution of disputes, supporting procedural fairness in arbitration.
Court may extend the mandate of an arbitral tribunal under justifiable circumstances, such as delays caused by external factors like pandemics, especially when there is no opposition from the other p....
The court has the discretion to extend the mandate of an arbitral tribunal based on the circumstances of the case, including the conclusion of proceedings and arguments before the tribunal.
Extension of Arbitral Tribunal's mandate is permissible under Section 11(6) of the Arbitration and Conciliation Act when both parties consent.
The court can extend the mandate of an Arbitral Tribunal under Section 29A(6) when there are no objections from the parties involved.
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