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IN THE HIGH COURT OF DELHI
Suresh Kumar Kait, J.
Ircon International Limited - Appellant
Versus
Hindustan Construction Co. Ltd. - Respondent
O.M.P.(MISC.)(COMM.) 170 of 2021
Decided On : 24-11-2021
Important Points
Subject
Arbitration - Mandate Extension
Headnote
(B) Legal proceedings and limitation periods - The court highlighted the importance of following the orders of the Supreme Court regarding the extension of limitation periods due to unprecedented circumstances, emphasizing judicial discretion in managing arbitration timelines. (Paras 5, 6)
Facts of the case:
The case involves a petition for extension of the mandate of the arbitral tribunal due to the COVID-19 pandemic, which caused a suspension of limitation periods impacting the arbitration process initially set for an award by 06.05.2020. (Paras 3, 4)
Findings of Court:
The mandate for the arbitrator was extended for one additional year until 03.01.2023, considering the parties' agreement and recent judicial directions regarding suspension of limitation periods due to the pandemic. (Paras 6, 8)
Issues: The main issues addressed were the validity of extending the arbitral tribunal's mandate in light of the expansion of limitation periods amid the pandemic and the agreement of the parties to this extension. (Paras 7, 8)
Ratio Decidendi: The court upheld that the Supreme Court's directives regarding the suspension of limitation periods were applicable, allowing for a reasonable extension of the arbitration mandate in the interest of justice and recognizing the unique challenges posed by the pandemic. (Paras 5, 8)
Result: Petition allowed, extending the tribunal’s mandate until 03.01.2023.
| Table of Content |
|---|
| 1. final disposition and extension of arbitration mandate. (Para 1 , 2 , 8 , 9) |
| 2. extension of arbitral mandate due to covid-19 limitations. (Para 3 , 4 , 5 , 6) |
| 3. no objection from respondents on petition allowance. (Para 7) |
JUDGMENT (Oral)
IA No. 15212/2021 (exemption)
1. Allowed with direction to file typed/dim/original/certified copy of documents within six weeks of this order.
2. Application is disposed of.
O.M.P.(MISC.)(COMM.) 170/2021
3. The present petition under Section 29 A (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. Learned counsel for the petitioner has contended that learned Arbitral Tribunal was constituted on 06.02.2018 comprising of Hon'ble Mr. Justice S.S. Nijjar (Retd.) (Presiding arbitrator), Mr. Suresh Kumar and Mr. M Ravindra, however, due to unfortunate demise of Mr. Justice S.S. Nijjar (Retd.), the arbitral tribunal was reconstituted with the members Hon'ble Justice Ms. Indu Malhotra (Retd.) (Presiding arbitrator), Mr. Suresh Kumar and Mr. M Ravindra.
5. Learned counsel for the petitioner has further pointed out that the limitation period for passing the award expired on 06.05.2020, however, in March 2020, after the outbreak of COVID-19 pandemic, the Hon'ble Supreme Court of India in Suo Motu Writ petition (Civil) No.3 of 2020, in Ref: Cognizance for extension of Limitation vide order dated 23.03.2020 suspended the limitation period for all proceedings before the Courts/Tribunals w.e.f.15.03.2020. Certainly, after reduction in the cases of COVID-19, the Hon'ble Supreme Court of India has recently directed that the limitation period from 15.03.2020 till 02.10.2021, shall remain excluded and the same shall be restored w.e.f. 03.10.2021.
6. Learned counsel appearing on behalf of the parties submit that in view of the abovementioned recent directions of the Hon'ble Supreme Court of India, the mandate of the learned Arbitral Tribunal shall expire on 02.01.2022.
7. Mr. Rishi Agrawala, learned counsel appearing on behalf of the respondent submits that as the arbitral proceedings are at the stage of filing of documents and recording of ex parte evidence, thus, he has no objection if the present petition is allowed.
8. In view of the reasons stated in the present petition and submission of learned counsel for the parties, I hereby extend the mandate of learned arbitrator tribunal comprising of Hon'ble Justice Ms. Indu Malhotra (Retd.) (Presiding arbitrator), Mr Suresh Kumar and Mr. M Ravindra for a period of one year i.e. upto 03.01.2023.
9. With aforesaid, the present petition is disposed of.
