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IN THE HIGH COURT OF DELHI
Jyoti Singh, J.
Indian Oil Corporation Limited - Appellant
Versus
Nayara Energy Limited - Respondent
O.M.P.(MISC.)(COMM.) 486 of 2019
Decided On : 29-11-2019
Extensions for completing arbitral proceedings under mutual consent are permissible, ensuring effective adjudication as demonstrated in this case.
Headnote:(A) Arbitration and Conciliation Act, 1996 - Sections 29A(1), 29A(4) & (5) - Extension of time for completion of arbitral proceedings - Parties jointly filed a petition seeking extension as the initial statutory period expired, and mutual consent for an extension was established - The Tribunal commenced proceedings on 30.05.2018 with the expiry of the statutory twelve months on 30.05.2019 and a further six-month extension had been granted - The parties sought an additional eight-month extension to conclude final arguments by 22.1.2020 - Petition accepted. (Para 1-5)
Facts of the case:
A petition was submitted jointly under the Arbitration Act seeking more time as the original period had expired and the proceedings were nearing completion with final arguments upcoming.
Findings of Court:
The time for completion of arbitral proceedings and passing of the Award was extended by eight months from the original expiry date.
Issues: The primary issue was whether the parties could agree to extend the time for the completion of arbitration proceedings.
Ratio Decidendi: The court held that extensions under the Arbitration Act can be granted with mutual consent as the parties were nearing final arguments, thereby facilitating adjudication.
Result: Petition allowed.
| Table of Content |
|---|
| 1. extension of arbitral proceedings timeline. (Para 1 , 2) |
| 2. request for further extension of time. (Para 3) |
| 3. consent to extend time granted. (Para 4) |
| 4. petition allowed, confirming extension. (Para 5) |
JUDGMENT
Jyoti Singh, J. (Oral)
I.A. 16784/2019
Exemption allowed, subject to all just exceptions.
Application stands disposed of.
O.M.P.(MISC.)(COMM.) 486/2019
1. Present petition has been jointly filed by the parties under Section 29A(4) & (5) of the Arbitration and Conciliation Act, 1996 (`Act') seeking extension of time for completion of the arbitral proceedings and passing of the Award.
2. It is averred in the petition that the Arbitral Tribunal entered upon reference on 30.05.2018. Statutory period of twelve months under Section 29A(1) of the Act expired on 30.05.2019. On 31.1.2019, time was extended by a period of six months with mutual consent, which is expiring on 30.11.2019.
3. Learned counsels for the parties submit that the proceedings are at the stage of final arguments which are scheduled to commence from 22.1.2020 and pray that the time be further extended for a period of eight months.
4. With the consent of the parties, time for completion of the proceedings and passing of the Award is extended by a period of eight months from 01.12.2019.
5. The petition is allowed in the aforesaid terms.
