Micromax Informatics Limited vs Star Mobitel Limited

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IN THE HIGH COURT OF DELHI
Suresh Kumar Kait, J.
Micromax Informatics Limited - Appellant
Versus
Star Mobitel Limited - Respondent
O.M.P.(MISC.)(COMM.) 35 of 2022 & I.As. 3141 of 2022 and 3142 of 2022
Decided On : 24-02-2022

Important Points

The court affirmed that extraordinary circumstances, such as a pandemic, can justify extending the mandate of an arbitral tribunal under Section 29 A(4) of the Arbitration and Conciliation Act, 1996.

Subject

Arbitration - Arbitration Proceedings

Headnote

(A) Arbitration and Conciliation Act, 1996 - Section 29 A(4) - Petition for extension of mandate of arbitral tribunal due to delays caused by Covid pandemic - Petition allowed; time for preparing and pronouncing the award extended to 31.08.2022. (Paras 1-5)

(B) Arbitral proceedings - The court recognized the necessity to address delays in arbitration proceedings stemming from extraordinary circumstances such as the nationwide lockdown. (Paras 2-3)

Facts of the case:
The appellant filed a petition seeking an extension of the arbitral tribunal's mandate after the last effective hearing took place on 15.02.2020 and proceedings remained stalled due to the Covid pandemic. (Paras 1-2)

Findings of Court:
The petition was granted, acknowledging the extenuating circumstances that affected the arbitration timeline during the pandemic.

Issues: The issue addressed was whether the mandate of the arbitral tribunal could be extended due to delays caused by the pandemic.

Ratio Decidendi: The court held that the extraordinary circumstances of the nationwide lockdown warranted an extension of the arbitral tribunal's mandate to ensure fair completion of the proceedings.

Result: The petition was allowed and the deadline for the Award was extended to 31.08.2022.

JUDGMENT (Oral)

1. 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 as per the provisions.

2. Learned counsel for the petitioner has submitted that the last effective hearing before the Tribunal was on 15.02.2020 wherein the counsel for the claimant/petitioner had addressed the final arguments and the matter was adjourned to 20.03.2020. However, due to nationwide lockdown and various waves of the Covid pandemic, the matter has not proceeded further. Therefore, the present petition has been filed seeking extension of time to conclude the arbitral proceedings.

3. Mr.Vishesh Issar, learned counsel has appeared on behalf of respondent on advance notice and has supported the prayer made in this petition.

4. Upon hearing and for the reasons stated in the petition, the same is allowed. Accordingly, the time for preparing and pronouncing the Award by the Arbitral Tribunal is extended upto 31.08.2022.

5. With are aforesaid, the present petition and pending applications disposed of.