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IN THE HIGH COURT OF DELHI AT NEW DELHI
Suresh Kumar Kait, J.
Patel Engineering Ltd. - Appellant
Versus
Himachal Pradesh Power Corporation Ltd. - Respondent
O.M.P.(Misc.)(Comm.) 137/2021 and CM(M) 581/2020 & CM No. 29582/2020 (for stay)
Decided On : 10-09-2021
Arbitration - Extension of Arbitral Tribunal's Mandate - The court allowed the extension of the arbitral tribunal's mandate for preparing and pronouncing the award, considering the concluded proceedings and arguments before the tribunal.
Fact of the Case:
The petitioner, a civil engineering and construction company, filed a petition seeking an extension of the mandate of the arbitral tribunal adjudicating disputes with the respondent, a public limited company, regarding a construction project. The tribunal's initial period had expired, and the petitioner sought further time due to the voluminous record.
Finding of the Court:
The court, after considering the arguments and proceedings before the arbitral tribunal, allowed the extension of the tribunal's mandate until 30.09.2021 for preparing and pronouncing the award.
Issues: Extension of Arbitral Tribunal's Mandate
Ratio Decidendi: The court extended the mandate of the arbitral tribunal based on the concluded proceedings and arguments before the tribunal, allowing further time for preparing and pronouncing the award.
Final Decision: The court granted the extension of the arbitral tribunal's mandate until 30.09.2021 for preparing and pronouncing the award.
JUDGMENT
(Oral)
IA No. 11544/2021 (u/S 151 CPC)
1. Exemption is allowed subject to all just exceptions.
2. Application is disposed of.
O.M.P. (Misc.)(Comm.) 137/2021
3. The present petition filed under Section 29A(4) 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, a leading Civil Engineering and Construction company and respondent- a public limited company had entered into a Contract dated 09.09.2009 with regard to a project for construction of diversion barrage, power intake, desanding arrangements and gates & hoisting arrangements complete in all respects for Sawra Kuddu Hydroelectric Project (111 MW) located in District Shimla, Himachal Pradesh. During execution of project certain disputes arose between the parties, for resolution of which an arbitral tribunal was constituted on 25.03.2019.
5. According to petitioner, the period of arbitral tribunal was thereafter extended for 18 months and the said period expired on 24.09.2020. Further submitted that arguments were concluded and Award was reserved on 22.04.2021, however, since the record is voluminous, therefore, further extension is sought for the Arbitral tribunal to prepare and announce the award.
6. Notice issued.
7. Mr. Anand Prakash, learned Standing Counsel appearing on behalf of respondent, accepts notice and submits that there is no objection if the time for making the award is extended.
8. Considering that the proceedings and arguments before the Arbitral tribunal have already concluded, I hereby extend the mandate and time of the Arbitral Tribunal upto 30.09.2021 for preparing and pronouncing the Award.
9. With aforesaid, the present petition and pending application are accordingly disposed of.
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.
The court upheld the extension of the arbitral tribunal's mandate to allow for proper resolution of disputes, supporting procedural fairness in arbitration.
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.
Court extends arbitrator's mandate under Section 29A upon sufficient cause like procedural delays and parties' participation, even post-18 months, to prevent defeating arbitration object by technical....
The Court holds that under Section 29-A(5) of the Arbitration and Conciliation Act, a court may extend the mandate of an arbitral tribunal beyond statutory and consensual timelines upon demonstration....
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