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2026 Supreme(Raj) 404

HIGH COURT OF JUDICATURE FOR RAJASTHAN, BENCH AT JAIPUR
SAMEER JAIN, J.
HCL Infosystems Limited, Through Its Authorised Signatory Mr. Arif Jamal - Petitioner 
Versus 
Jaipur Vidyut Vitran Nigam Limited, Through Its Managing Director – Respondent
S.B. Civil Writ Petition No. 16033 of 2024 Connected With S.B. Civil Writ Petition No. 7066 of 2026
Decided On : 27-05-2026

Advocates Appeared:
For the Petitioner:Mr. Rajendra Prasad, Advocate General (for petitioners in SBCWP No.7066/2026 and for respondent in SBCWP No.16033/2024) assisted by Mr. Kartik Seth Ms. Shilpa Saini Ms. Dhriti Laddha.
For the Respondents:Mr. RN Mathur, Senior Counsel (for petitioner in SBCWP No.16033/2024 and for respondent in SBCWP No.7066/2026) assisted by Mr. Shailesh Kapoor Mr. Lokesh Atrey Ms. Sakshi Chaturvedi.

Extensions of time for arbitral awards require demonstrating 'sufficient cause' and are subject to judicial oversight. Procedural laxity, such as sporadic hearings or inflated session-based fees, warrants judicial intervention to protect the legislative intent of ensuring expeditious, cost-effective, and transparent dispute resolution.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Sections 24 and 29A - Time-bound arbitral adjudication - Extension of mandate - Successive applications for extension - Principles of sufficient cause - Supervisory jurisdiction of High Court under Article 227 of the Constitution - Arbitral fees and cost-effectiveness in ad hoc arbitration.

(B) Successive applications for extension of mandate under Section 29A are not per se barred, but power must be exercised with circumspection and is not an automatic right - 'Sufficient Cause' cannot be elastic to accommodate indolence, tactical delays, or procedural laxity - (Paras 40-42).

(C) Arbitral Tribunals have a continuous obligation to adhere to procedural discipline, specifically holding day-to-day hearings as mandated by Section 24 - Permitting session-based fee models in widely spaced, sporadic hearings risks normalizing delay and frustrating the legislative intent of cost-effective dispute resolution - (Paras 47-51, 54-57).

Facts of the case:
Proceedings arose from a large-scale infrastructure project dispute. The arbitral mandate was extended multiple times by mutual agreement and subsequently by court orders due to delays and complexity. The petitioners challenged the grant of a second extension of mandate and sought a reduction in fees and substitution of the tribunal, citing dilatory tactics and lack of adherence to time-bound adjudication.

Findings of Court:
The court found that the tribunal’s conduct, characterized by widely spaced sessions, unplanned venue shifts, and escalating costs, justified judicial intervention under supervisory jurisdiction. The court ordered a proportionate reduction in fees for delay attributable to the tribunal’s failure to maintain procedural rigor.

Issues: Whether a petition under supervisory jurisdiction is maintainable against orders for extension of mandate; whether successive applications for extension are permissible; whether the tribunal’s procedural conduct met the statutory requirements of expedition and day-to-day hearings.

Ratio Decidendi: The court held that while the power of extension exists to prevent a failure of justice, it must be balanced with strict accountability. Procedures must be subservient to the goal of timely adjudication, and procedural discipline is mandatory. Financial structures in private arbitration must not incentivize delays as this defeats the object of the statute.

Result: Petitions allowed in part; directions issued for completion of proceedings within a strict deadline and an order for fee reduction passed.

Judgement Key Points

Key Points: - Successive applications under Section 29A of the Arbitration and Conciliation Act, 1996 are not barred per se and may be maintainable in appropriate cases, but such maintainability must be tested on the touchstone of demonstrable, compelling, and bona fide reasons. (!) - The extension of the arbitral mandate can be granted only upon demonstration of "sufficient cause" as per Section 29A, subject to appropriate terms and conditions. (!) - The High Court can exercise its supervisory jurisdiction under Article 227 of the Constitution of India against orders passed under Section 29A of the Act, as no statutory appeal is provided against such orders. (!) - When delay in arbitral proceedings is substantially attributable to the Arbitral Tribunal, the Court may intervene under Section 29A(4) to impose corrective measures, including reduction of arbitral fees. (!) - The Court, while extending the mandate under Section 29A, is empowered to impose such terms and conditions as it thinks fit for efficiency and integrity of the arbitral proceedings, and may also impose exemplary costs. (!) (!) - The conduct of the Arbitral Tribunal, marked by a casual approach, repeated adjournments, and fixation of high fee structures, which undermines the objectives of the Act, can warrant judicial correction, including the substitution of arbitrators. (!)

How to determine the maintainability of a successive application under Section 29A of the Arbitration and Conciliation Act, 1996 for extension of the mandate of an Arbitral Tribunal?

What constitutes "sufficient cause" under Section 29A(4) of the Arbitration and Conciliation Act, 1996 for granting an extension of the Arbitral Tribunal's mandate?

What are the rights of a court under Section 29A of the Arbitration and Conciliation Act, 1996 to impose corrective measures, including reduction of arbitral fees, when the delay in arbitral proceedings is attributable to the Arbitral Tribunal?


Table of Content
1. consolidation of related petitions for expeditious adjudication under article 227 supervision. (Para 1 , 2 , 3 , 4 , 5)
2. procedural history of arbitral timeline extensions and the impact of initial conditional grant. (Para 6 , 7 , 8 , 9 , 10)
3. petitioner's contention regarding the illegality of successive extensions and misapplication of 'sufficient cause'. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18)
4. respondent's defense based on party autonomy, lack of statutory bar on extensions, and the advanced stage of arbitration. (Para 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29)
5. scope of high court supervisory jurisdiction under article 227 in arbitral proceedings. (Para 36 , 37 , 38)
6. maintainability of successive applications for time extension under section 29a based on the 'sufficient cause' test. (Para 39 , 40 , 41 , 42)
7. requirement of judicial accountability and strict adherence to statutory timelines under section 24 and 29a. (Para 43 , 44 , 45 , 46 , 47 , 48 , 49 , 50 , 51 , 52)
8. regulation of exorbitant arbitral fees and venue shifts as contributing factors to procedural delay and prejudice. (Para 53 , 54 , 55 , 56 , 57 , 58 , 59 , 60)
9. corrective judicial intervention against the arbitral tribunal's failure to adhere to the statutory mandate. (Para 61 , 62 , 63 , 64 , 65 , 66 , 67 , 68 , 69 , 70 , 71)
10. court-ordered directions for expeditious conclusion of proceedings and reduction of fees due to delays. (Para 72 , 73 , 74 , 75)

JUDGMENT :

SAMEER JAIN, J.

1. In view of the intrinsically intertwined nature of the controversy at hand, coupled with the strikingly identical factual substratum permeating the present batch of petitions, and upon express consent of the learned counsel appearing for the respective parties, this Court, being persuaded by the congruence of the issues involved and in furtherance of the cause of expeditious and efficacious adjudication, proceeds to determine the instant petitions by way of this composite and common judgment. The ratio decidendi rendered herein shall, accordingly, govern the connected matters mutatis mutandis, subject to contextual adaptation on facts. For the purposes of maintaining factual coherence and narrative forbearance, the pleadings and averments as delineated in S.B. Civil Writ Petition No.7066/2026 (Jaipur Vidyut Vitran Nigam Limited & Ors. vs. HCL Infosys Limited) are hereby treated as the lead case and adopted as the foundational factual matrix for adjudication of the present lis. For the sake of reference and procedural lucidity, the tabular depiction ad infra delineates the constituent segments into which the present judgment stands bifurcated, thereby facilitating analytical coherence and navigational convenience.

A. PRAYERS AND RELIEFS CANVASSED BY THE PETITIONER(S) IN THE RESPECTIVE PETITIONS:

2. SBCWP No. 7066/2026 is filed under Article 227 of the Constitution of India, invoking the supervisory jurisdiction of this Court over subordinate courts and tribunals, assailing the legality, propriety, and tenability of the order dated 24.02.2026 passed by the Commercial Court No.1, Jaipur Metropolitan-II, in Case No.34/2026 (CIS No.68/2025), whereby the mandate of the Arbitral Tribunal has been extended till 30.09.2026; and SBCWP No. 16033/2024 has been filed assailing the impugned order dated 17.09.2024, pertaining to the initial extension granted under Section 29A of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as “the Act of 1996”), on an application moved by the respondents–complainants therein, which came to be allowed subject to certain stipulated terms and conditions. Both matters, being inextricably interlinked and resting upon a common legal and factual foundation, have, with the concurrence of learned counsel for the respective parties, been taken up for conjoint and final adjudication.

3. In the present matters, the following prayers have been made:

“SBCWP No.7066/2026:

1. Allow the present Petition and set as

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