Petition under Section 29A(4) sought extension of the Arbitrator's mandate after it terminated on efflux of time. Both parties jointly sought a six-month extension citing COVID-19 delay and monsoon disruptions, with claimant's evidence already recorded. Court extended the mandate till 16.01.2025.
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IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
Arb. Case No.393 of 2024 Decided on: 17th June, 2024
Hindustan Petroleum Corporation Ltd. and Others …..Petitioners Versus Shree Balaji Filling Station .....Respondent ------------------------------------------------------------------------------------- Coram
Ms. Justice Jyotsna Rewal Dua
Whether approved for reporting?1 For the petitioner : Mr. Nitin Thakur, Advocate. For the respondent : Mr. Suneet Goel, Advocate.
Jyotsna Rewal Dua, Judge
This petition has been preferred under Section 29A(4) of the Arbitration and Conciliation Act, 1996 for extension of time for completion of the arbitral proceedings by extending the mandate of the learned Sole Arbitrator.
1 Whether reporters of print and electronic media may be allowed to see the order? Yes
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an Arbitrator. The petitioners preferred different arbitration cases seeking appointment of new Arbitrator. Vide common order dated 06.08.2021 passed in these Arbitration Cases including Arbitration Case No.9 of 2021, new Arbitrator was appointed.
The Arbitrator entered upon the reference. The award could not be pronounced as the mandate of the Arbitrator was terminated with efflux of time on 29.08.2023. In the aforesaid circumstances, the petitioners have prayed for extending the mandate of the learned Sole Arbitrator for completing the arbitration proceedings by six months.
Act, 1996, setting down time limit for the arbitral awards, runs as under:-
Provided that the award in the matter of international commercial arbitration may be made as expeditiously as possible and endeavour may be made to dispose off the matter within a period of twelve months from the date of completion of pleadings under sub-section (4) of section 23.
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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 five per cent. for each month of such delay.
Provided further that where an application under sub-section (5) is pending, the mandate of the arbitrator shall continue till the disposal of the said application:
Provided also that the arbitrator shall be given an opportunity of being heard before the fees is reduced.
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Sub-Section (4) of the above extracted provision provides for extending the mandate of the Arbitrator by the Court. Learned counsel appearing on both sides submit that initially on account of COVID-19 pandemic and thereafter on account of severe monsoon season in the State of Himachal Pradesh, causing rampant destruction road blockage etc., the proceedings in the arbitration matter could not be concluded. It was further submitted that the claimant has already led its evidence. It is only the petitioners who are to lead their evidence. That the matter otherwise is nearing completion. Learned counsel on both sides prayed for extending the period for completion of arbitral proceedings by six months.
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the Arbitrator, this petition is allowed. By exercising the power under Section 29A(4) of the Arbitration and Conciliation Act, the mandate of learned Arbitrator in deciding the petition under reference is extended by six months from today, i.e. till 16.01.2025 , as mutually agreed between the parties. The parties, through their learned counsel, are directed to appear before the learned Arbitrator on 18.07.2024 , as mutually agreed between them.
The petitions stand disposed of in the above terms, so also the pending miscellaneous application(s), if any.
July 17, 2024 Pardeep
Jyotsna Rewal Dua Judge
1 issue framed by the court
Whether the mandate of the Sole Arbitrator should be extended under Section 29A(4) to complete arbitral proceedings.
1 provisions across 1 enactments
Hindustan Petroleum Corporation Ltd. and Others
Shree Balaji Filling Station
Jyotsna Rewal Dua
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
