Court may extend arbitrator's mandate under Section 29A(4)(5) post-expiry if sufficient cause shown, such as advanced proceedings and delay not attributable to parties, to ensure logical conclusion and effective dispute resolution.

JUDGMENT :

Ranjan Sharma, J.

Petitioner-Subash Chand has come up before this Court in instant petition filed under Section 29 (4) of the Arbitration and Conciliation Act, 1996, seeking following relief:-

“It is, therefore, respectfully prayed that in view of the facts stated above the application may kindly be allowed and the time limit for completing the Arbitration proceedings in Arbitration Reference Case No.94/2023 titled as Subash Chand Vs NHAI and other pending before the Ld. Divisional Commissioner (Arbitrator), Mandi, Distt. Mandi, H.P. may kindly be extended for a further period of six months or any other orders or directions which this Ld. Court may deem fit be passed in the interest of justice.”

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 Mandi Section of National Highway-70 and (KM 141 to KM 265) in Village/Muhal Manthala, Hadbast No.357, Tehsil Sadar, District Mandi, Himachal Pradesh, comprised Khasra No.1093/1031/1, was acquired, in terms of the Award No.43/3 dated 09.05.2018.
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.94 of 2023, In Re; Subash Chand Versus NHAI and others. 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 petitioner-Subash Chand invoked arbitration by filing the petition on 06.03.2024. After completion of pleadings the issues were framed and the petitioner–claimant, led his PWs evidence by way of affidavit. Respondents also adduced evidence and thereafter arguments were heard 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 30.05.2025 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.NH-70 (94/23) passed by 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, Mr. Lovneesh Thakur, Learned Counsel appearing on behalf Respondent No.1-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, 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 Respondent No. 2-State.

5. Heard, Mr. Suneet Verma, Learned Counsel for the petitioner; Mr. Lovneesh Thakur, Learned Counsel, for Respondent No.1-NHAI; and