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2025 Supreme(Ker) 3248

IN THE HIGH COURT OF KERALA AT ERNAKULAM
Devan Ramachandran, M.B.Snehalatha, JJ.
Offshore Infrastructures Limited - Petitioner
Versus
Bharat Petroleum Corp. Ltd. – Respondent
ICR(OP(ATE)No.22 of 2025, OP(ATE)No.3 of 2024, OP(ATE)No.4 of 2024 & OP(ATE)No.20 of 2025
Decided On : 08-10-2025

Advocates Appeared:
For the Petitioner: Advs.M/A.Rajiv Abraham George, Satish Mohan
For the Respondent:Advs.M.Gopikrishnan Nambiar, K.John Mathai, Joson Manavalan, Kuryan, Thomas, Paulose C. Abraham, Raja Kannan, Dominic Antony, Advocate Sri. Sreelal N.Warrier, Amicus Curiae

The court affirmed that the term 'Court' under Section 29A of the Arbitration Act is exhaustively defined, limiting powers to specified civil courts, with definitive precedents clarifying that High Courts lack authority in contexts not expressly permitted.

Headnote:(A) Arbitration and Conciliation Act, 1966 - Section 29A - Definition of 'Court' in arbitration - Court's powers regarding the extension of an arbitrator's mandate were examined, affirming the position established in prior judgments. The High Court does not retain powers under Section 29A where it lacks ordinary civil jurisdiction. The court clarified that only the Principal Civil Court or a specified High Court may extend the mandate under Section 29A. (Paras 4, 12, 26)

(B) Precedent - The court emphasized binding legal principles from established Supreme Court rulings clarifying the jurisdictional scope of 'Court' under the Arbitration Act, notably rejecting prior interpretations not mindful of binding judgments. (Paras 10, 24, 28)

Facts of the case:
The case revolved around the correct interpretation of 'Court' under the Arbitration Act, particularly in determining whether powers for extending an arbitrator's mandate reside with the High Court or local courts. Previous conflicting judgments were discussed, particularly the case of M/s.Lots Shipping Company Ltd. and its interpretation of Section 29A.

Findings of Court:
Affirmed that the Supreme Court's judgments clarify that the scope of 'Court' in the Arbitration Act does not include the High Court unless specified, thereby overturning conflicting prior decisions.

Issues: The key issue was whether the authority to extend the mandate of an arbitrator lies exclusively with the High Court or is shared with lower courts under the Arbitration Act.

Ratio Decidendi: The Supreme Court has established explicitly that the powers under Section 29A are limited to Courts defined under Section 2(1)(e) of the Arbitration Act, reinforcing the decision against broader interpretations that allow High Courts wider authority in arbitrations.

Result: The questions referred were clarified and the precedent of M/s.Lots Shipping Company Ltd. was found not to be good law.

Table of Content
1. reference for evaluation of 'court' definition (Para 1 , 2 , 3)
2. arbitration time limits and court roles (Para 4 , 5 , 6 , 7)
3. judicial confusion regarding court powers (Para 8 , 9 , 10 , 11 , 12)
4. supreme court clarification on 'court' definition (Para 13 , 14 , 15 , 16)
5. amicus curiae's submissions on arbitration powers (Para 17 , 18 , 19 , 20)
6. distinction of powers under section 15 (Para 21 , 22)
7. exhaustive definition of 'court' under the act (Para 23 , 24 , 25 , 26)
8. overruling previous judgment by chief engineer (nh) (Para 27 , 28)
9. final order and implications (Para 29)

ORDER :

Devan Ramachandran, J.

We are speaking on a reference placed before us by the Hon’ble the Chief Justice of this Court, initiated by a learned Single Judge through his order dated 09.06.2025.

2. The forensic and legal issues involved are ones that have engaged the attention of Courts several times before; and perhaps on which, authoritative pronouncements have already been made, not only by this Court or by other High Courts, but also by the Hon’ble Supreme Court.

3. The singular aspect placed for our evaluation under the reference, is as to the identity of the ‘Court’ as appearing in Section 29A of the Arbitration and Conciliation Act, 1966 (‘Act’ for short).

4. As is well recognized, under the ‘Act’, after an Arbitrator/Arbitral Tribunal is appointed, it prescribes a time limit for the mandate of Arbitration, which can then be extended in the manner specified in Section 29A thereof.

5. The apparent confusion is hinged on the question if such an extension can be granted by a Court which is not the High Court, in the case of an Arbitration where the Arbitrator/Arbitral Tribunal had been appointed by it under the provisions of Section 11 of the ‘Act’.

6. At first blush, there should not have been any real issue for concern because, Section 2 (1)(e) of the ‘Act’ defines ‘Court’ in the following manner:

“2. Definitions.—(1) In this Part, unless the context otherwise requires,—

[(e) “Court” means—

(i) in the case of an arbitration other than international commercial arbitration, the principal Civil Court of original jurisdiction in a district, and includes the High Court in exercise of its ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the subject-matter of the arbitration if the same had been the subject- matter of a suit, but does not include any Civil Court of a grade inferior to such principal Civil Court, or any Court of Small Causes;

(ii) in the case of international commercial arbitration, the High Court in exercise of its ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the subject-matter of the arbitration if the same had been the subject-matter of a suit, and in other cases, a High Court having jurisdiction to hear appeals from decrees of courts subordinate to that High Court;]”

7. However, almost as an exception, the ‘Act’ then mandates under Section 11 that, in certain specified scenarios, the appointment of an Arbitrator/Arbitral Tribunal shall be made by the High Court in the case of a Domestic Arbitration and by the Hon’ble Supreme Court in the case of an International Arbitration.

8. It is here that the question arises whether an extension of the mandate of the Arbitrator beyond the period - which is normally fixed under Section 29A(1) of the ‘Act’ - should be left to be done by the Court as defined under Section 2 (1)(e) thereof, or by the High Court/ Supreme Court, as the case may be.

9. This confusion is not something that arose recently because, even prior to the year 2020, a reference appears to have been made by another learned Judge on the very same issue, which led to a judgment by a learned Division Bench, cited as M/s.Lots Shipping Company Ltd. V. Cochin Port Trust Board of Trustees [ 2020(2) KLT 907 ].

10. In M/s.Lots Shipping Company Ltd. (supra), the learned Bench adopted the principles of contextual interpretation, to h

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