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2022 Supreme(HP) 761

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
AJAY MOHAN GOEL, J.
Ram Chand – Petitioner
Versus
Land Acquisition Officer and Another – Respondents
Arbitration Case Nos. 126, 127, 141, 142, 143 of 2022
Decided On : 01-12-2022

Advocates:
Advocate Appeared:
For the Petitioner: Sanket Sankhyan.
For the Respondents: Sumesh Raj, Dinesh Thakur, Sanjeev Sood, Amit Kumar Dhumal, K.D. Shreedhar, Shreya Chauhan.

Point of Law : When a statute envisages an authority, be it an Arbitrator, to do a particular act in a particular manner and in a prescribed time schedule, then onus is upon the said authority/Arbitrator to perform the task entrusted to it within time schedule prescribed in the statute - Delay, if any, has to be bona-fide and explainable.

Headnote:

Arbitration and Conciliation Act, 1996 - Section 29(A) - National Highways Act, 1956 - Section 3G (a) - Land acquisition - Arbitral dispute - Purpose of construction of the National Highway - Arbitral disputes arise out of the land acquisition in District Bilaspur, H.P. for the purpose of construction of National Highway, land for which has been acquired under provisions of National Highways Act, 1956. - Reference Petitions against the Award were filed by the land owners about five years back - Pleadings in all above mentioned arbitral petitions are stated to have been completed by the parties before learned Arbitrator - However, fact of matter is that since then Award has not been announced by learned Arbitrator, i.e. Arbitrator-cum-Divisional Commissioner - A perusal of these petitions demonstrates that proceedings therein were governed by procedure as it was contained in Arbitration and Conciliation Act, 1996 before Section 29(A) thereof was amended by Act No. - Meaning thereby that arbitration proceedings were to be decided within a period of one year as from date when learned Arbitral Tribunal entered upon reference and with consent of parties same was extendable for a period not exceeding six months - Thereafter, mandate of Arbitrator was mandatarily to terminate unless Court either prior or after expiry of period specified, extended period on request of either of parties - Now, in terms of amendment which has been incorporated under Section 29(A) of Act , period of one year for making Award commences from date of completion of the pleadings - Court is of considered view that when a statute envisages an authority, be it an Arbitrator, to do a particular act in a particular manner and in a prescribed time schedule, then onus is upon the said authority/Arbitrator to perform task entrusted to it within the time schedule prescribed in the statute - Delay, if any, has to be bona-fide and explainable. Para 17

Finding of Court :

Record demonstrates that even after completion of pleadings, the matters were adjourned by learned Arbitrator for one reason or other on number of occasions - Court fails to understand as to how Arbitrator can with such a callous attitude take upon the task of deciding arbitration proceedings knowing fully well that if the proceedings are not completed within time schedule mentioned in Act, then unless same is extended by a Court of Law, mandate of Arbitrator shall stand terminated- Court is restraining from making any further observation in case save and except that henceforth, if Court finds Arbitrator to be remiss in his duties, then it shall not hesitate in invoking its powers as are enshrined in Section 29 (A) (6) of 1996 Act, to terminate mandate of Arbitrator, dehors fact that Arbitrator happens to be appointed in terms of notification issued by Central Government under Section 3G (a) of the National Highways Act, 1956.

Result : Petitions stand disposed of.

JUDGMENT :

AJAY MOHAN GOEL, J.

1. With the consent of the parties, all these five petitions are being disposed of by a common order. In all these petitions, the prayer is to extend the time for completion of the arbitral proceedings so as to enable learned Arbitral Tribunal to pass the Award.

2. The arbitral disputes arise out of the land acquisition in District Bilaspur, H.P. for the purpose of construction of the National Highway, land for which has been acquired under the provisions of National Highways Act, 1956. The land of the petitioners has been acquired in these cases in terms of the following awards:

(a)

Arbitration Case No. 126 of 2022

Award No. 17/1 of 2013-14, dated 31.12.2013.

(b)

Arbitration Case No. 127 of 2022

Award No. 17/1 of 2013/14, dated 31.12.2013.

(c)

Arbitration Case No. 141 of 2022

Award No. 19/2 of 2013-14, dated 10.09.2014.

(d)

Arbitration Case No. 142 of 2022

Award No. 19/2 of 2013-14, dated 10.09.2014.

(e)

Arbitration Case No. 143 of 2022

Award No. 19/2 of 2013-14, dated 10.09.2014.

3. Feeling aggrieved by the respective Awards, the land owners thereafter have preferred Reference Petitions which are pending before learned Arbitrator and non-adjudication of the arbitral proceedings within the statutory period has resulted in filing of the present petitions.

4. The Reference Petitions against the Award were filed by the land owners about five years back. The pleadings in all the above mentioned arbitral petitions are stated to have been completed by the parties before learned Arbitrator on 22.08.2019. However, fact of the matter is that since then the Award has not been announced by learned Arbitrator, i.e. the Arbitrator-cum-Divisional Commissioner, Mandi, District Mandi, H.P.

5. A perusal of these petitions demonstrates that the proceedings therein were governed by the procedure as it was contained in the Arbitration and Conciliation Act, 1996 before Section 29(A) thereof was amended by the Act No. 33 of 2019, w.e.f. 31.08.2019. Meaning thereby that the arbitration proceedings were to be decided within a period of one year as from the date when learned Arbitral Tribunal entered upon the reference and with the consent of the parties the same was extendable for a period not exceeding six months. Thereafter, the mandate of Arbitrator was mandatarily to terminate unless the Court either prior or after expiry of period specified, extended the period on the request of either of the parties. Now, in terms of the amendment which has been incorporated under Section 29(A) of the Act w.e.f. 31.08.2019, the period of one year for making the Award commences from the date of completion of the pleadings.

6. Having gone through the order sheets appended with the petitions carefully, this Court is pained to observe that the proceedings have been conducted by learned Arbitrator by giving a complete go by to the statutory provisions as are contained in the Arbitration and Conciliation Act, 1996. The statutory provisions of the Act, be it before amendment or after amendment, have been flouted with impunity.

7. This Court is of the considered view that when a statute envisages an authority, be it an Arbitrator, to do a particular act in a particular manner and in a prescribed time schedule, then the onus is upon the said authority/Arbitrator to perform the task entrusted to it within the time schedule prescribed in the statute. The delay, if any, has to be bona-fide and explainable.

8. Coming to the present petitions, record demonstrates that even after completion of the pleadings, the matters were adjourned by learned Arbitrator for one reason or the other on number of occasions. This Court fails to understand as to how the Arbitrator can with such a callous attitude take upon the task of deciding the arbitration proceedings knowing fully

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