Arbitrators must adhere to statutory timelines for arbitral proceedings; failure to do so may result in termination of their mandate.

JUDGMENT :

Sushil Kukreja, J.

Notice. Mr. Raj Kumar Negi, learned Additional Advocate General and Ms. Shreya Chauhan, Advocate, appear and waive service of notice on behalf of respondents No.1 & 2 respectively.

2. In the present petition, a prayer has been made by the petitioner to extend the time for completion of the arbitral proceedings in Arbitration Reference Petition No.280/2019, pending before the learned Divisional Commissioner, Mandi, District Mandi, H.P., exercising the powers of Arbitrator under Section 3 of the NATIONAL HIGHWAYS ACT , 1956.

3. The arbitral dispute has arisen out of the land acquisition in District Mandi, 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 petitioner has been acquired in the present case vide Award No.36/2016-17 (SNR), dated 25.11.2016, Muhal Chowk/7, Tehsil Sunder Nagar, District Mandi, H.P.

4. Feeling aggrieved by the aforesaid Award, the landowner has preferred Arbitration Reference Petition No.280/2019, which is pending before the learned Divisional Commissioner, Mandi, and non-adjudication of the arbitral proceedings within the statutory period has resulted in filing of the instant petition.

5. It has been stated by the petitioner that his petition was consolidated and tagged with other petitions but due to administrative responsibilities the proceedings of these cases were adjourned repeatedly. The issues were framed on 31.05.2022 and thereafter the case was fixed for evidence of the petitioner. The petitioner led his evidence alongwith other applicants and the learned Arbitrator fixed the petition on 11.01.2023, but he had shown his inability to proceed further as the mandatory period for arbitration stood expired.

6. This Court has gone through the material available on record and finds that the proceedings have been conducted by the learned Arbitrator in violation of statutory provisions, as contained in the Arbitration and Conciliation Act, 1996. This Court is of the 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 bonafide and explainable. However, in the present petition even after completion of the pleadings, the matter was adjourned by the learned Arbitrator on one pretext or the other. This Court fails to understand as to how the Arbitrator with such a callous attitude can decide the arbitration proceedings knowing fully well that if the proceedings are not completed within the time stipulated in the Act, then unless the same is extended by a Court of Law, the mandate of the Arbitrator shall stand terminated.

7. However, at this stage, the Court is restraining from making any further observation in the case save and except that henceforth, if the Court finds the Arbitrator derelicting his duties, then it shall not hesitate to invoke its powers as enshrined in Section 29 (A) (6) of the 1996 Act, to terminate the mandate of the Arbitrator, dehors the fact that the Arbitrator happens to be appointed in terms of the notification issued by the Central Government under Section 3G (a) of the NATIONAL HIGHWAYS ACT , 1956.

8. In view of the above discussion, the instant petition is allowed and the Divisional Commissioner, Mandi, District Mandi, H.P., exercising the powers of Arbitrator under Section 3 of the NATIONAL HIGHWAYS ACT , 1956 is directed to conclude the arbitral proceedings and to pass the arbitral award in Arbitration Reference Petition No.280/2019, on or before 8th July, 2024.

Petition stands dispo