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2025 Supreme(HP) 1724

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
Ranjan Sharma, J.
Parvinder Singh - Petitioner
Versus
National Highway Authority of India Through its Project Director (PIU) Tehsil District Hamirpur - Respondent
Arbitration Case No. 385 of 2025
Decided On : 04-12-2025

Advocates:
Advocate Appeared:
For the Petitioner:Mr. Parveen Kumar Bhatti, Advocate
For the Respondents:Mr. Sumit Sharma, Deputy Advocate General, Ms. Shreya Chauhan, Advocate

Court extends arbitrator's mandate under Section 29A(4)(5) post-expiry for sufficient cause where proceedings advanced, delay administrative, not petitioner's fault, ensuring logical and expeditious conclusion.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Sections 29A(4) and (5) - Extension of arbitrator’s mandate - Proceedings under reference for land acquisition compensation dispute - Pleadings complete, claimant led evidence by affidavit, no rebuttal evidence, written arguments filed, matter reserved for award - Predecessor reserved on date prior to expiry, successor held mandate terminated due to change in incumbent and elapsed time - Petition seeks regularization from specific date and extension for reasonable time - Respondent states no reply intended, supports logical conclusion - Sufficient cause exists as delay due to administrative exigencies, not attributable to petitioner, proceedings at final stage - Impugned order closing proceedings quashed - Arbitrator directed to conclude and pass award within six months. (Paras 2, 8-11)

(B) Extension of time - Application maintainable prior to or after expiry - Granted for sufficient cause to facilitate effective dispute resolution - Court may substitute arbitrators, continue from reached stage, reduce fees for tribunal delay, impose costs. (Paras 6-7)

Facts of the case:
Land acquired for highway bypass via award - Dissatisfied party filed reference to arbitrator - Consent extension once granted - Proceedings advanced: issues framed, evidence (claimant only), arguments heard, reserved - Successor arbitrator closed citing mandate termination - No opposition from respondent to extension.

Findings of Court:
Impugned order dated closing proceedings set aside; arbitrator to conclude case by passing award within six months from judgment receipt; parties bear respective costs.

Issues: Whether sufficient cause made out for extending mandate post-expiry; propriety of closing advanced arbitral proceedings.

Ratio Decidendi: Sufficient cause for extension where proceedings near conclusion, delay administrative and not party-attributable, intent to take process to logical end pragmatically.

Result: Petition allowed.

Table of Content
1. arbitration delayed post-advanced stage due to arbitrator change. (Para 1 , 2 , 3 , 4 , 5)
2. respondents do not oppose mandate extension. (Para 6 , 8)
3. section 29a allows court extension of award timeline. (Para 9)
4. supreme court permits post-expiry extension for sufficient cause. (Para 10 , 11)

JUDGMENT :
Ranjan Sharma, Judge

Petitioner-Parvinder Singh has come up before this Court, under Section 29-A (4) (5) of the Arbitration and Conciliation Act, 1996, seeking following relief(s):-

“That the period from 13.08.2025 onwards may kindly be regularized and the mandate of the arbitrator may kindly be extended for a reasonable time.”

FACTUAL MATRIX:

2. Grievance of the petitioner is that the Central Government issued a Notification under the National Highways Act for acquiring the land at Hamirpur Bypass of National Highway-103 and National Highway-3 (Design change KM 121+175 to KM 138=295 of village Kamlah Mouzajangal Ropa, Tehsil and District Hamirpur, Himachal Pradesh was acquired, in terms of the Award No. 27/2022 dated 13.06.2023.

2(i) Feeling dissatisfied against the Award, the petitioner filed a Reference before Learned Arbitrator-cum-Divisional Commissioner, Mandi under Section 3G(5) of the National Highways Act vide Reference No. NH-(16/24) In re: Parvinder Singh versus LAC-cum-S.D.O © Hamirpur. Perusal of the petition indicates that even after the completion of pleadings, Learned Arbitrator could not conclude the proceedings within the prescribed period of 12 months. Thereafter, with consent of the parties, the time for concluding the arbitral proceedings was extended.

2(ii). Perusal of the pleadings in the instant petition reveals that the petitioner-Parvinder Singh invoked arbitration by filing the petition on 02.03.2024. After completion of pleadings the issues were framed and the petitioner–claimant, led his PWs evidence by way of affidavit. Respondents chose not to file any evidence in rebuttal. Even the written arguments were submitted by Petitioners counsel and the case was reserved for announcement of orders/ judgment. Even the perusal of the impugned orders dated 05.08.2025 indicates that the predecessor in office of the present Arbitrator-Divisional Commissioner, Mandi had reserved the matter on 18.07.2025 after hearing arguments, but no Award was pronounced. The present incumbent/ Arbitrator had stated that he joined as Divisional Commissioner on 04.08.2025 and, therefore, since the mandate of the Arbitrator had already elapsed. Therefore, the parties were directed to approach the competent Court for extension of time so that arbitral could proceed hereinafter.

It is in this backdrop that the instant petition has been filed, assailing the orders dated 05.08.2025 in case No. 16/2024 passed by respondent No.4-Learned Arbitrator with the prayer to direct the concerned Arbitrator to conclude the arbitral proceedings under Section 29-A(4)(5) of Arbitration and Conciliation Act.

STAND OF RESPONDENT No.1 [NHAI] :

3. Upon listing of this case today, Ms. Shreya Chauhan, Learned counsel for respondent No.2- National Highway Authority of India, on Instructions, states that keeping in view the intent and object of the arbitral proceedings which have to be given a practical shape so that the rights of the parties fructify by taking the proceedings to logical end coupled with the fact that in similar cases, the Arbitration proceedings originating from the same acquisition notice and the award have been concluded; therefore, she submits that in peculiar fact-situation of this case, no reply is intended to be filed to the present case.

4. Learned State Counsel states that since the contesting respondent is NHAI-Respondent No.1, therefore, no reply is intended to be filed on behalf of Respondents No. 2 to 4- State.

5. Heard, Mr. Parveen Kumar Bhatti, Learned Counsel for the petitioner and Mr. Sumit Sharma, Learned Deputy Advocate General and Ms. Shreya Chauhan, Learned Counsel for Respondent No.1-National Highway Aut



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