HIGH COURT OF JAMMU AND KASHMIR

AT JAMMU

CJ Court

Case: Arbitration Petition AA Nos. 4 - 9 of 2020

Chief Engineer System and Operation

Wing JKPTCL, Jammu.

…Petitioner(s)

Through: Sh. G. A. Lone, Advocate.

Sh. Amit Gupta, AAG

v/s

M/s KEC International Limited.

…. Respondent(s)

Through: Sh. Pranav Kohli, Sr. Advocate

with Sh. Rahul Sharma, Advocate.

CORAM: HON’BLE THE CHIEF JUSTICE

ORDER

01.

Heard Sh. G. A. Lone, and Sh. Amit Gupta, counsel for the

petitioners and Sh. Pranav Kohli, senior counsel assisted by Sh. Rahul Sharma,

counsel for the respondent.

02.

All the above petitions have been preferred by the Chief Engineer

System and Operation Wing Jammu and Kashmir Power Transmission

Corporation Limited (JKPTCL) Jammu allegedly under Section 14 of the

Arbitration and Conciliation Act 1996 read with Section 29 A (4) of the

Jammu and Kashmir Arbitration and Conciliation Act 2018 for holding that the

mandate of the three member arbitral tribunal be determined in conducting

arbitration cases Nos. 4-9 of 2020 all titled as ‘Chief Engineer System and

Operation Wing JKPTCL, Jammu versus. M/s KEC International Limited’ and

for setting aside the order of tribunal dated 29.10.2019 and 09.11.2019 by

Sr. No. 203 &204

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Arbitration Petition AA Nos.4 - 9 of 2020

which it has ruled that its mandate do not stand determined as alleged by the

petitioner.

03.

The arbitral tribunal of three arbitrators was having six identical

arbitration cases being arbitration Nos. 1 to 6 titled as ‘KEC International

versus State and others’. The hearing of arbitration cases 1 and 2 is complete.

Arguments in arbitration case 4, 5, and 6 have also been heard; the tribunal is

hearing arbitration case No. 3. However, since the proceedings were

considerably delayed, the applications were moved by this petitioner stating

that the mandate of the arbitral tribunal stood determined by efflux of time as it

had failed to make the awards within the stipulated time. These applications

were rejected during the course of hearing on 29.10.2019 as recorded by the

arbitral tribunal and a reasoned order was subsequently pronounced on

09.11.2019.

04.

The references to the arbitral tribunal were made on 14.11.2013

and the arbitral tribunal entered into the arbitrations on 23.09.2014 where upon

first sitting took place in September itself. In the meantime, the Jammu and

Kashmir Arbitration Act 1996 was amended by Jammu and Kashmir

Arbitration and Conciliation(Amendment) Act 2018 and notified to be enforced

with effect from 1^st October 2018.Itprovided for insertion of Section 29A to the

principle Act after originally existing Section 29 of the said Act. The relevant

part of the said newly inserted Section 29-A of the Act reads as under:

“29A Time limit for arbitral award ---(1) The

award shall be made within a period of twelve

months from the date the arbitral tribunal enters

upon the reference.

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Arbitration Petition AA Nos.4 - 9 of 2020

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.”

05.

The aforesaid newly inserted provision lays down the time period

for making the award and provides that the award shall be made within a

period of 12 months from the date arbitral tribunal enters upon the reference.

06.

It is in view of the aforesaid amended provision that the petitioner

submits that as no award has been made within 12 months of entering into the

arbitration or from the date of commencement of the aforesaid amendment Act,

the mandate of the arbitrators stands determined.

07.

Sh. Lone further submits that the arbitral tribunal manifestly erred

in law in rejectin