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IN THE HIGH COURT OF DELHI AT NEW DELHI
Chandra Dhari Singh, J.
Skylark Cagers India Pvt. Ltd. - Petitioner
Versus
The Institute Of Liver and Biliary Sciences – Respondent
O.M.P. (MISC.) 14 of 2019 & I.A. 334 of 2023
Decided On : 01-03-2023
Arbitration - Extension of Time - Arbitration and Conciliation Act, 1996, Section 29A
Fact of the Case:
The petitioner filed an application seeking an extension of time for completion of arbitral proceedings and making of the arbitral award under Section 29A of the Arbitration and Conciliation Act, 1996.
Finding of the Court:
The court dismissed the petition as it was filed at a belated stage and devoid of merit.
Issues: The main issue was whether the petitioner was entitled to an extension of time for the conclusion of arbitral proceedings.
Ratio Decidendi: The court emphasized the purpose of Section 29A, which aims for expeditious disposal of arbitration proceedings and discourages parties from seeking unnecessary adjournments.
Final Decision: The petition along with pending applications was dismissed.
ORDER :
Chandra Dhari Singh, J.
1. The instant application has been filed by the petitioner under Section 29A of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as “the Act, 1996”) seeking the following relief:
2. Learned counsel appearing on behalf of the petitioner submitted that the arbitral proceedings were initiated pursuant to a notice of invocation given by the petitioner, Skylark Cagers International, on 12th April, 2016. The Applicant is the Claimant in the aforementioned arbitration procedures.
3. It has been submitted on behalf of the petitioner that on 3rd October, 2016, all pleadings, including the counterclaim, were submitted in the aforementioned matter, and the case was thereafter set for admission and denial of documents. However, on 10th October, 2016, the petitioner filed additional documents in response to the respondent's counterclaim and many other arguments. It is further submitted that the aforementioned application with respect to taking additional documents on record was allowed subject to costs. Subsequently, the parties concluded the admission denial of the documents and on 21st November, 2016, the petitioner company filed a list of witness including the affidavit of Sh. Navdeep Pratap Singh, who was also witness to the said matter.
4. It has been submitted on behalf of the petitioner that in the meantime, due to the witness's unavailability, Sh. Navneet Pratap Singh replaced the said witness and the witness was cross-examined on 22nd December, 2016. The cross-examination, however, was postponed at the parties' mutual request to explore settlement possibilities.
5. It is further submitted that in the absence of any settlement between the parties, the case was reopened on 3rd January, 2017.
6. It has been submitted on behalf of the petitioner that due to the expiration of the statutory mandate of one and a half years, including the six-month extension, the Learned Arbitrator directed the parties vide order dated 14th October, 2017 to request an extension of time from this Court in order to conclude the Arbitration proceedings.
7. Per contra, learned counsel appearing on behalf of the respondent submits that by way of the instant petition, asking for an extension of four months for the completion or arbitration procedures, the petitioner is abusing the due process of law. Since, the act's allotted time for concluding the arbitration proceeding had lapsed, the Learned Arbitrator extended it by another six months, which likewise ran out on 13th October, 2017. Subsequent thereto, the Learned Arbitrator directed the petitioner vide order dated 14th October, 2017 to approach this Court to request an extension of time. It is further submitted that the present petitioner has been filed after an in-ordinate delay of more than 17 months.
8. It is submitted on behalf of the respondent that since more than 17 months have elapsed from the date of the Ld. Arbitrator's order, the petitioner has failed to provide any valid justification for approaching this court to request an extension of time for the conclusion of arbitral proceedings. It is further submitted that this demonstrates the lackadaisical approach of the petitioner towards the arbitration proceedings. Thus, the instant application is an obvious instance of legal process abuse.
9. Heard the learned counsel for the parties and perused the record.
10. This Court finds it evident to peruse Section 29-A of the Act, 1996 in order to adjudicate the instant petition. The same is reproduced hereunder:
The purpose of Section 29A of the Arbitration and Conciliation Act, 1996 is to ensure expeditious disposal of arbitration proceedings and discourage unnecessary adjournments.
The definition of 'sufficient cause' under S.29-A of the Arbitration and Conciliation Act must facilitate effective dispute resolution.
Extension of arbitration time requires 'sufficient cause' to facilitate effective dispute resolution under S.29-A of the Arbitration and Conciliation Act.
Court extends arbitrator's mandate under Section 29A(5) post-expiry and termination upon sufficient cause, quashing abeyance where delays due to respondent and administration, prioritizing efficient ....
The main legal point established in the judgment is the court's authority to grant an extension of time for the conclusion of arbitration proceedings under Section 29-A(5) of the Arbitration and Conc....
The court held that the mandate of an arbitrator can be extended for sufficient cause, emphasizing that procedural delays should not prejudice the parties involved in arbitration.
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....
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