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2021 Supreme(Mad) 1694

IN THE HIGH COURT OF JUDICATURE AT MADRAS
ABDUL QUDDHOSE, J.
S. Balasubramanian - Appellant
Versus
M/s. Amarprakash Property Management Services Private Ltd., Chennai – Respondent
C.M.A Nos. 2477 to 2509, 2545 to 2558 of 2017 & CMP Nos. 13643 to 13675, 13905 to 13918 of 2017
Decided on : 21-09-2021

Advocates:
Advocate Appeared:
For the Appellant :P.V. Balasubramaniam, Advocate
For the Respondent:M/s. Kumarapal R. Chopora, Advocate, Dinesh Kumar

Headnote:

Arbitration and Conciliation Act, 2015 - Sections 37, 17 and 29-A - Time limit for Arbitral award - Sums of money towards maintenance - Disputes between the parties - Appeals have been filed by the Apartment owners of a residential complex which was earlier maintained by respondent under a maintenance agreement - There seems to be some disputes between the parties under said agreement and the said disputes were referred to Arbitration in accordance with Arbitration clause contained in said agreement - Impugned order has been passed under Section 17 of Arbitration and Conciliation Act issuing certain interim directions against each of the respective appellants in all these appeals – Held, Arbitration claims excepting for passing of interim order under Section 17 of Arbitration and Conciliation Act, no further progress has been shown in the Arbitration by Arbitral Tribunal. Admittedly claim statements have also not been filed till date - Arbitration was originally initiated in the year 2017 and even after lapse of more than four years, no progress has been shown in Arbitration - Impugned orders passed under Section 17 of the Arbitration and Conciliation Act, which is subject matter of these appeals have to be necessarily set aside as Section 29-A of Arbitration and Conciliation Act has been contravened by Arbitral Tribunal by not showing any progress in the Arbitration after passing of the impugned orders - Appeals are allowed

JUDGMENT :

(Common Prayer: Civil Miscellaneous Appeals filed under Section 37 of the Arbitration and Conciliation Act, 2015 to set aside the order dated 21.07.2017 passed by the sole Arbitrator and allow this Appeal.)

1. These appeals arise out of similar orders passed by the Arbitral Tribunal under Section 17 of the Arbitration and Conciliation Act, wherein interim directions have been issued to the respective appellants to pay certain sums of money towards maintenance and other charges. Since, these appeals arise out of the very same issue, all these appeals are disposed of by a common judgment.

2. These appeals have been filed by the Apartment owners of a residential complex which was earlier maintained by the respondent under a maintenance agreement. There seems to be some disputes between the parties under the said agreement and the said disputes were referred to Arbitration in accordance with the Arbitration clause contained in the said agreement. The impugned order has been passed under Section 17 of Arbitration and Conciliation Act issuing certain interim directions against each of the respective appellants in all these appeals.

3. Aggrieved by the same, these appeals have been filed under Section 37 of the Arbitration and Conciliation Act.

4. On the last hearing date i.e. on 16.09.2021, this Court directed the respondent counsel Mr.Kumarapal R. Chopra, learned counsel to get instructions as to whether the respondent has filed the claim statement in the Arbitration as the learned counsel for the Appellant in all these appeals was repeatedly pointing out that till date, no claim statement was filed.

5. Today, the learned counsel for the Appellant in all these appeals would submit till date, no claim statement has been filed by the respondent before the Arbitral Tribunal and he would also submit that one of the Arbitrators who has passed the impugned orders under Section 17 of the Arbitration and Conciliation Act Mr.M.Sunil Raja has now become a Civil Judge (Junior Division) and the other Arbitrator Mr.Inbavijayan, learned counsel has also not shown interest in proceeding with the Arbitration. Under the Arbitration and Conciliation Act once the interim order is granted, the Arbitration should be completed expeditiously.

6. Mr.Kumarapal R. Chopra, learned counsel today informs this Court that he had already given change of vakalath to Mr.Dinesh Kumar, learned counsel, who has not appeared before this Court today.

7. Infact under Section 29-A of the Arbitration and Conciliation Act 1996, strict time lines have been statutorily fixed for completion of Arbitration. Section 29-A of the Arbitration and Conciliation Act reads as follows :

    [29A.Time limit for Arbitral award.--2[(1) The award shall be made within a period of twelve months from the date the arbitral tribunal enters upon the reference.

Explanation : For the purpose of this sub-section, an arbitral tribunal shall be deemed to have entered upon the reference on the date on which the arbitrator or all the arbitrators, as the case may be, have received notice, in writing of their appointment.

(2) If the award is made within a period of six months from the date the arbitral tribunal enters upon the reference, the arbitral tribunal shall be entitled to receive such amount of additional fees as the parties may agree.

(3) The parties may, by consent, extend the period specified in sub-section (1) for making award for a further period not exceeding six months.

(4) If the award is not made within the period specified in sub-section (1) or the extended period specified under sub-section (3), the mandate of the arbitrator(s) shall terminate unless the Court has, either prior to or after the expiry of the period so specified, extended the period:

Provided that while extending the period under this sub-section, if the Court finds that the proceedings have been delayed for the reasons attributable to the arbitral tribunal, then, it may order reduction of fees of arbitrator(s) by not exceeding

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