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IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
Hindustan Construction Company Limited - Appellant
Versus
Ircon International Limited - Respondent
O.M.P.(MISC.)(COMM.) 36 of 2021
Decided On : 03-03-2021




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.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 29A(5) - Extension of mandate of the Arbitral Tribunal due to delay in making the award - Court condoned the delay and extended the mandate by three months - Counsel for the respondent requested for a refresher hearing which was not granted by the court, citing ongoing finalization of the award. (Paras 3-9)

Facts of the case:
The petition sought extension of the mandate of the Arbitral Tribunal as it had expired on 4th February 2021, due to delays attributed to a member's indisposition and logistical issues related to remote signing. The award is on the verge of completion.

Findings of Court:
The court extended the mandate for an additional three months to allow the Arbitral Tribunal to finalize the award and disposed of the petition.

Issues: The main issues addressed were whether to extend the mandate of the Arbitral Tribunal and whether to grant a refresher hearing to the respondent.

Ratio Decidendi: The court reasoned that the delays were justified and prioritized the prompt finalization of the award, emphasizing that the request for a refresher hearing was previously denied.

Result: The mandate of the learned Arbitral Tribunal stands extended by a period of three months.

Table of Content
1. final disposition of the petition. (Para 1 , 2 , 10)
2. petition for extension of arbitral mandate. (Para 3)
3. discussion on request for refresher hearing. (Para 4 , 6 , 7)
4. court's rationale on urgency of award pronouncement. (Para 5 , 8)
5. extension of mandate granted for three months. (Para 9)

ORDER (Oral)

(Video-Conferencing)

IA 3279/2021 (Section 151 CPC for condonation of delay)

1. For the reasons stated in the application, delay is condoned.

2. The application stands disposed of.

O.M.P.(MISC.)(COMM.) 36/2021

3. This is a petition under Section 29A(5) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "1996 Act"), seeking extension of the mandate of the learned Arbitral Tribunal to adjudicate on the disputes between the parties. The mandate expired on 4th February, 2021.

4. Mr. Wadhwa, learned Senior Counsel for the petitioner, draws my attention to the email dated 18th January, 2021, from the learned Presiding Arbitrator, which reads thus:

    "From: Badar Ahmed

    Sent: 18 January 2021 12:18

    To: NAIK Gurudas/CONTRACTS & CLAIMS/H.O.

    ; dnegi@jsalaw com; Mirza, Gauhar; Pragya Chauhan ; KUMAR Rakesh /CONTRACTS&CLAIMS/H.O.; Sidharth Sethi ; Harsh Khare ; Mukesh Kumar ; Kumar Ravi Shankar ;Karia,Tejas; Deep, Prakhar ; Gupta, Hirai ; Gupta, Manavendra

    Cc: BP Khare ; SURESH KUMAR

    Subject: Arbitration BETWEEN Hindustan Construction Company Limited AND IRCON International Ltd

    Dear All,

    The Hon'ble High Court had extended the time for making the award till 04.02.2021 by virtue of its order dated 06.11.2020. However, discussions could not be concluded till after the first week of January 2021 as, Mr. Bhuvnesh Prakash Khare, a member of the Arbitral Tribunal was indisposed. The discussions amongst the members of the Arbitral Tribunal have now been finally held through videoconferencing and the award is at the stage of finalisation. In all likelihood the proceedings would be completed on or before 04.02.2021.

    However, since the arbitrators are located in three different cities, the signing at three different locations and consequent postal communications would also take some time.

    Accordingly, to be on the safe side, the parties may apply for extension of time till the end of February, 2021for making the award.

    Justice Badar Durrez Ahmed (retd)

    Presiding Arbitrator"

5. It appears, therefore, that the award is on the cusp of pronouncement.

6. Mr. Mukhopadhyay, learned Senior Counsel for the respondent, submits that he has no objection to extension of time as sought, but that the learned Arbitral Tribunal may be directed to provide another opportunity of "refresher hearing" to his client, given the time that has lapsed since the award was reserved.

7. Mr. Wadhwa points out that a request, to this effect, was made and was rejected by the learned Presiding Arbitrator on 7th December, 2020.

8. In view thereof, I am not inclined to accede to the request for the learned Arbitral Tribunal to give a "refresher hearing" to the respondent, especially as the afore-extracted email from the Hon'ble Presiding Member of the learned Arbitral Tribunal seems to indicate that the award is likely to be pronounced soon.

9. In view thereof, the mandate of the learned Arbitral Tribunal stands extended by a period of three months from today.

10. This petition stands disposed of.

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