Kamla Devi Vs Special Land Acquisition Officer and Others — Arbitration | Himachal Pradesh HC (2026)

Kamla Devi Vs Special Land Acquisition Officer and Others — Arbitration | Himachal Pradesh HC (2026)

What the court decided

AI extract

Outcome

Extension of time granted — the Arbitrator-cum-Divisional Commissioner, Mandi, H.P. directed to conclude the arbitral proceedings in Arbitration Reference Case No.154/2019 and pass the arbitral award on or before 10th September, 2026; petition disposed of in those terms.

Issue for consideration

Whether extension of time should be granted for completion of the arbitration proceedings and passing of the award in Arbitration Reference Case No. 154/2019, pending before the Divisional Commissioner, Mandi, acting as Arbitrator under Section 3 of the National Highways Act, 1956, beyond the statutory time limit under the Arbitration and Conciliation Act, 1996.

Court's answer

On scrutiny of the record, the Court found that the arbitral proceedings were conducted by the learned Arbitrator in violation of the statutory provisions contained in the Arbitration and Conciliation Act, 1996.

Ratio / Principle

Despite completion of the pleadings, the learned Arbitrator had closed the proceedings because the time limit for the arbitral proceedings to pass an award had elapsed.

Key takeaways

When a statute envisages an authority, be it an Arbitrator, to do a particular act in a particular manner and in a prescribed time schedule, the onus is upon the said authority/Arbitrator to perform the task entrusted to it within the time schedule prescribed in the statute, and any delay has to be bonafide and explainable.ratio¶18
The Arbitrator-cum-Divisional Commissioner, Mandi, H.P., exercising the powers of Arbitrator under Section 3 of the National Highways Act, 1956, was directed to conclude the arbitral proceedings and pass the arbitral award in Arbitration Reference Case No.154/2019 on or before 10th September, 2026.ratio¶19

Detailed headnote1 paragraphs

Arbitration — Extension of time — S. 29(4), Arbitration and Conciliation Act, 1996 — Petition by landowner (Kamla Devi) for extension of time for completion of arbitration proceedings in Arbitration Reference Case No.154/2019, pending before the Divisional Commissioner, Mandi, exercising powers of Arbitrator under S. 3 of the National Highways Act, 1956, arising out of land acquired in District Mandi, H.P. for National Highway construction — Held: proceedings were conducted by the learned Arbitrator in violation of the statutory provisions of the 1996 Act; where a statute prescribes a manner and time schedule, the onus lies on the authority/Arbitrator to complete the task within that schedule and any delay must be bonafide and explainable; although pleadings stood completed, the Arbitrator had closed the proceedings as the statutory time limit had elapsed — Arbitrator-cum-Divisional Commissioner, Mandi directed to conclude the proceedings and pass the award on or before 10.09.2026 — Petition disposed of. (Romesh Verma, J.; 10.03.2026)

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA

Arbitration Case No. 31 of 2026 Date of decision : 10.03.2026.

Kamla Devi

...Petitioner.

Versus

Special Land Acquisition Officer & another ... Respondent. Coram:

The Hon’ble Mr. Justice Romesh Verma, Judge.

Whether approved for reporting?¹ For the Petitioner: Mr. Rajesh Prakash, Advocate. For the Respondents: Mr. Manish Thakur, Dy. A.G. for respondent No.1. Ms. Shreya Chauhan, Advocate, for respondent No. 2.

Romesh Verma, Judge (oral)

The present petition under Section 29 (4) of the Arbitration and Conciliation Act, 1996 has been filed by the petitioner seeking extension of time for completion of the arbitration proceedings in Arbitration Reference Case No. 154/2019, titled as Kamla Devi vs. Special Land Acquisition Officer, pending before the learned Divisional Commissioner Mandi, District Mandi, H.P., exercising the powers of Arbitrator under Section 3 of the National Highways Act, 1956.

1 Whether reporters of Local Papers may be allowed to see the judgment?

-2- 2026:HHC:6550 )

2 The arbitral dispute has arisen out of the land acquired in District Mandi, H.P. for the purpose of construction of the National Highway, land for which has been acquired under the provisions of National Highways Act, 1956.

3 Feeling aggrieved by the award passed by the competent authority, the landowner has preferred Arbitration Reference Case No.154/2019, before the learned Arbitrator cum-Divisional Commissioner, Mandi, and non adjudication of the arbitral proceedings within the statutory period has resulted in filing of the instant petition.

4 The Reference Petition against the Award was filed by the land owner in the year 2019. According to the petitioner, on account of unforeseen circumstances in the case, which resulted in unnecessary delay in the announcement of the award by the learned Arbitrator, i.e. the Divisional Commissioner, Mandi, H.P.

5 This Court has gone through the material available on record carefully and finds that the proceedings have been conducted by the learned Arbitrator in violation of statutory provisions, as contained in the Arbitration and Conciliation Act, 1996. This Court is of the view that when a statute envisages an authority, be it an Arbitrator, to do a particular act in a

-3- 2026:HHC:6550 )

particular manner and in a prescribed time schedule, then the onus is upon the said authority/Arbitrator to perform the task entrusted to it within the time schedule prescribed in the statute. The delay, if any, has to be bonafide and explainable. However, in the present petition even after completion of the pleadings, the learned Arbitrator has closed the proceedings since the time limit for arbitral proceedings to pass an award had elapsed.

6 In view of aforesaid discussion and taking into consideration the attending facts and circumstance of the instant case, the Arbitrator-cum-Divisional Commissioner, Mandi, H.P., exercising the powers of Arbitrator under Section 3 of the National Highways Act, 1956 is directed to conclude the arbitral proceedings and to pass the arbitral award in Arbitration Reference Case No.154/2019, on or before 10th

September, 2026.

7 The petition stands disposed of in the aforesaid terms.

(Romesh Verma) March 10, 2026 Judge (Veena)