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IN THE HIGH COURT OF DELHI
Suresh Kumar Kait, J.
Rail Vikas Nigam Ltd. - Appellant
Versus
Simplex Infrastructures Ltd. - Respondent
O.M.P.(MISC.)(COMM.) 161 of 2021
Decided On : 24-11-2021




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.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Sections 29 A(4) and (5) - Extension of mandate of arbitral tribunal - Petition filed by public sector enterprise for extension of mandate of tribunal past the expiration date due to complexities and delays caused by the pandemic - Consent of both parties for extension noted - Mandate extended to 31.01.2022. (Paras 1-6)

(B) Arbitration - Time limits - Statutory time limits for passing arbitral awards and extension provisions - Period can be extended through mutual consent and in light of exceptional circumstances such as a pandemic. (Paras 3, 4)

Facts of the case:
The petitioner, a public sector enterprise, contracted with the respondent for construction works and faced disputes that led to arbitration. The Arbitral Tribunal's mandate expired on 28.12.2019 and had been extended several times due to complications and the Covid pandemic.

Findings of Court:
The court extended the mandate of the Arbitral Tribunal to 31.01.2022 to facilitate the passing of the Award, considering the complexities involved.

Issues: The main issue was whether the time limit for the Arbitral Tribunal could be extended given the circumstances surrounding the case.

Ratio Decidendi: The court found that extensions of time for arbitral proceedings are permissible under the Act, especially when both parties consent and extraordinary circumstances like a pandemic are present.

Result: Petition allowed.

Table of Content
1. extension of arbitration tribunal's mandate due to delays. (Para 1 , 2 , 3)
2. arguments for further extension to conclude arbitration. (Para 4 , 5)
3. court extends tribunal's mandate until specified date. (Para 6)
4. court disposes of petition post-extension order. (Para 7)

JUDGMENT (Oral)

1. The present petition filed under Section 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.

2. Pertinently, petitioner is a public sector enterprise under the Ministry of Railways of the Indian Government, who had entered into a contract for "Construction of Viaduct including related works for 4.78 Kms excluding the station area from Ch. (-)1250 to Ch.4128 between Joka to Behala Chowrasta including approach at Joka-Package 1" with respondent on 28.01.2011. However, certain disputes arose between the parties, consequent thereto, respondent invoked arbitration and the Arbitral Tribunal was constituted on 28.12.2018.

3. It is averred on behalf of petitioner that the statutory time limit of one year for passing the Arbitral expired on 28.12.2019 and consequently, with the consent of both the sides on 09.01.2020, it stood extended for further six months i.e. till 28.06.2020.However, due to Covid pandemic, the hearings had to be deferred and thereby, the Arbitral Tribunal stood extended till 31.10.2020; 31.12.2020 and 30.04.2021.

4. Learned counsel for petitioner submits that matter is reserved for passing of Arbitral Award, however, due to voluminous record and complexities, further extension is sought to enable the Arbitral Tribunal to pronounce the Award.

5. Learned counsel appearing on behalf of respondent has supported the aforesaid submissions made on behalf of the petitioner.

6. Considering that the proceedings and arguments before the Arbitral tribunal have already been concluded, I hereby extend the mandate and time of the Arbitral Tribunal up to 31.01.2022 for preparing and pronouncing the Award.

7. With aforesaid, the present petition is accordingly disposed of.

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