IN THE HIGH COURT OF KERALA AT ERNAKULAM
SATHISH NINAN, J.
M/s Flemingo Duty Free Shop Private Ltd - Petitioner
Versus
Airports Authority of India, Represented By Its Airport Director - Respondent
Arbitration Petition No.1 of 2021
Decided On : 28-06-2022
Arbitration and Conciliation Act, 1996 - Section 29A (1) and (3) - Business of operation of duty free shops - Arbitration Petition - Seeking an order for extension of period of arbitration on substitution of Arbitrator - petitioner is engaged in business of operation of duty free shops at various airports in Kerala. There arose disputes between the parties, which lead to conduct of arbitration proceedings as provided for in the agreement between them - petitioner is not entitled to seek for substitution alleging bias against the Arbitrator in this proceedings, and in the light of the stand adopted by the petitioner as noticed above, the question of consideration of extension of time for completion of the arbitral proceedings under Section 29A does not arise. (Para 15)
Finding of the court: There is a stark difference between the two. This fortifies the view that the request for substitution of an Arbitrator alleging bias will not come within the scope of substitution under Section 29A(6) of the Act - The pleadings were completed on 14.09.2017. The one year period and the extendable period of six months are over as early. There is no dispute between the parties that, if time is not extended in terms of Section 29A(4), the mandate of the Arbitrator has terminated.
Result: Arbitration Petition is ordered.
ORDER :
The Arbitration Petition is filed seeking an order for extension of period of arbitration on substitution of Arbitrator.
2. The reliefs claimed in the Arbitration Petition reads thus:-
(b) Appoint a Sole Arbitrator in place of Learned Sole Arbitrator A.K. Singhal for continuation of the arbitration matter of Flemingo Duty free Shop Private Limited v. Airports Authority of India.
(c) Extend the time for completion of the arbitration proceedings in the arbitration matter of Flemingo Duty free Shop Private Limited vs. Airports Authority of India by a period of six months from the date of appointment of the new Sole Arbitrator.
(d) Grant the cost of the Application to the petitioner; and
(e) grant such other reliefs as may be deemed fit, just, proper and necessary in the facts and circumstances of the case.”
3. The petitioner is engaged in the business of operation of duty free shops at various airports in Kerala. There arose disputes between the parties, which lead to conduct of arbitration proceedings as provided for in the agreement between them. The sole Arbitrator was appointed on 25.01.2016. The pleadings were complete on 14.09.2017. The period for completion of arbitration as provided under Section 29A (1) and (3) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as “the Act”) expired. Even after the expiry of the term, the proceedings continued but, is not completed. Now the petitioner alleges bias on the part of the Arbitrator. The petitioner has approached this Court seeking substitution of the Arbitrator and for extension of the period in terms of Section 29A (6) and (4) respectively, of the Act. The respondent opposes the prayer. The allegation of bias are denied. The jurisdiction of this Court to entertain an application under Section 29A is also challenged.
4. Heard the learned Senior Counsel Sri. J.P. Sen on behalf of the petitioner and learned Senior Counsel Sri. N.N. Sugunapalan, on behalf of the respondent.
5. The respondent raised a preliminary objection regarding the jurisdiction of the High Court to entertain a petition under Section 29 A of the Act. Under Section 29 A, power is conferred on the “Court”, and Section 2(e) defines “Court” as, principal Civil Court of original jurisdiction. Therefore, only the District Court has the jurisdiction, is the contention. Such contention has already been negatived by a Division Bench of this Court in Lots Shipping Company Limited v. Cochin Port Trust [2020 (2) KLT 907]. The Division Bench held thus:-
Therefore, the challenge against jurisdiction is liable to be rejected and I do so.
6. Whether allegation of bias could be a ground for substitution of Arbitrator under Section 29A(6), is the issue for determination.
7. For challenging an Arbitrator on the ground of bias, there is a specific provision in the Act viz. Section 12. Sections 1
Section 29A of Act is intended to sensitize parties as also the Arbitral Tribunal to aim for culmination of arbitration proceedings expeditiously. It is with this legislative intent, Section 29A was ....
Court ruled that a sole arbitrator's mandate terminates upon the expiration of the designated time period, warranting appointment of a substitute under Section 29A(6) of the Arbitration and Conciliat....
The court clarifies that S.29A permits applications for extension even after the arbitrator's mandate expires, emphasizing flexibility in arbitration proceedings.
The High Court has exclusive authority to extend the mandate of an arbitrator appointed under Section 11 of the Arbitration & Conciliation Act, 1996, regardless of the pecuniary value of the claim.
The requirement of consent of the parties for extension of mandate under Section 29A(3) does not apply to Section 29A(4) and (5). The power to extend the period specified in Section 29A(1) or the ext....
(1) Extension of mandate of Arbitrator(s) – Application under Section 29A(5) for extension of mandate of Arbitrator is maintainable even after expiry of time under Sections 29A(1) and (3) and even af....
The Court emphasized that grievances regarding the conduct of the arbitrator should be raised at the stage of challenging the eventual award and that the alleged delay in the proceedings did not warr....
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