IN THE HIGH COURT OF DELHI AT NEW DELHI
Suresh Kumar Kait, J.
M/s Pnc-trg (JV) - Appellant
Versus
National Highways Authority Of India - Respondent
Original Miscellaneous Petition (MISC.)(COMM.) No. 168 of 2021
Decided On : 17-11-2021
Arbitration and Conciliation Act, 1996 - Extension of Arbitral Tribunal's mandate - The court allowed the extension of the Arbitral Tribunal's mandate for concluding the proceedings and preparing the award due to delays caused by the Covid-19 pandemic and the substitution of the Presiding Arbitrator.
Fact of the Case:
The petitioner filed a petition seeking extension of the mandate of the arbitral tribunal adjudicating disputes arising from a contract with the National Highways Authority of India (NHAI) due to delays caused by the Covid-19 pandemic and the substitution of the Presiding Arbitrator.
Finding of the Court:
The court allowed the extension of the Arbitral Tribunal's mandate until 28.02.2022, considering the reasons for delay and the consent of the respondent.
Issues: Extension of Arbitral Tribunal's mandate
Ratio Decidendi: The court extended the mandate of the Arbitral Tribunal due to delays caused by the Covid-19 pandemic and the substitution of the Presiding Arbitrator, with the consent of the respondent.
Final Decision: The court extended the mandate of the Arbitral Tribunal for concluding the proceedings and preparing the award until 28.02.2022.
JUDGMENT
Suresh Kumar Kait, J. - IA No. 15014/2021 (exemption)
1. Allowed, subject to all just exceptions.
2. Application is disposed of.
O.M.P.(MISC.)(COMM.) 168/2021
3. The present petition under Sections 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.
4. Pertinently, Petitioner, PNC-TRG (JV), a Joint Venture between M/s. PNC Infratech Ltd. (formerly known as M/S PNC Construction Co. Ltd) and respondent- National Highways Authority of India (NHAI) with regard to O.M.P.(MISC.)(COMM.) 168/2021 certain disputes arising out of a contract dated 19.9.2007, for the work of four laning of Km 51.00 to Km. 61.00 (including Chambal Bridge) on Dholpur-Morena Section of NH-3 on North-South corridor in the States of Rajasthan / Madhya Pradesh (Contract package No. NS-1/RJ-MP/1), had entered into an arbitration. The Arbitral Tribunal was held on 24.10.2018 (with Corrigendum dated 26.10.2018).
5. As per averments made in Para-5(xviii) till (xx), the reasons for delay in arbitral proceedings due to Covid pandemic have been cited. Further in Para-5 (xxi) it is further averred that after demise Mr. J.C. Shah, Presiding Arbitrator, in July, 2020, Mr. S.C. Gupta, former General Manager NTPC was appointed as the Substitute Presiding Arbitrator and the Arbitral Tribunal further proceeded in the matter.
6. At the hearing, learned counsel for petitioner has submitted that total 47 meetings have taken place before the Arbitral Tribunal, however, prolongation of proceedings is beyond the control and therefore, prays that the mandate of Arbitral Tribunal be extended till 28.2.2022.
7. Notice issued.
8. Mr. Vikas Kumar, Advocate, learned Counsel appearing on behalf of respondent, accepts notice and submits that there is no objection if the time for making the award is extended.
9. In view of the aforesaid, the mandate and time of the Arbitral Tribunal for conclusion of proceedings, preparing and pronouncing the Award is extended upto 28.02.2022.
10. With aforesaid directions, the present petition is accordingly disposed of.
The court has the discretion to extend the mandate of the Arbitral Tribunal in cases of delays caused by unforeseen circumstances, with the consent of the parties involved.
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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 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 upheld the extension of the Arbitral Tribunal's mandate under Section 29A(5) of the Arbitration and Conciliation Act, permitting additional time for award finalization.
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