Ashwani Kumar and Another Vs Union of India and Others — Arbitration | Himachal Pradesh HC (2026)

Ashwani Kumar and Another Vs Union of India and Others — Arbitration | Himachal Pradesh HC (2026)

What the court decided

AI extract

Outcome

Extension of time granted: the Arbitrator-cum-Divisional Commissioner, Shimla was directed to conclude the arbitral proceedings in Arbitration Case No. 400/2018 and pass the arbitral award on or before 6th September, 2026.

Issue for consideration

Whether the Court should grant extension of time for completion of the arbitration proceedings in Arbitration Case No. 400/2018 under Section 29-A (5) of the Arbitration and Conciliation Act, 1996. +1 more

Court's answer

The Arbitrator-cum-Divisional Commissioner, Shimla, District Shimla, H.P., exercising 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 Case No. 400/2018 on or before 6th September, 2026.

Ratio / Principle

The Court found, on review of the material on record, that the arbitral proceedings were conducted by the learned Arbitrator in violation of the statutory provisions of the Arbitration and Conciliation Act, 1996.

Key takeaways

When a statute envisages an authority, be it an Arbitrator, to do a particular act in a particular manner and within a prescribed time schedule, the onus is upon that authority/Arbitrator to perform the task within the prescribed schedule, and any delay must be bonafide and explainable.ratio¶21

Detailed headnote1 paragraphs

Arbitration and Conciliation Act, 1996 – Section 29-A (5) – Extension of time for completion of arbitral proceedings. Landowners (Ashwani Kumar & ors.) filed this petition under Section 29-A (5) of the Arbitration and Conciliation Act, 1996 seeking extension of time for completion of the arbitration proceedings in Arbitration Case No. 400/2018, pending before the Divisional Commissioner, Shimla, exercising powers of Arbitrator under Section 3 of the National Highways Act, 1956, the dispute having arisen from land acquired in District Solan, H.P. for National Highway construction; the Reference Petition against the competent authority's award was filed in 2018, and the learned Arbitrator closed the proceedings after completion of pleadings because the statutory time limit had elapsed. The Court found the proceedings had been conducted in violation of the statutory provisions of the 1996 Act, observed that the onus lies on the arbitrator to perform within the statutorily prescribed time schedule and that any delay must be bonafide and explainable, and directed the Arbitrator-cum-Divisional Commissioner, Shimla to conclude the proceedings and pass the award on or before 6th September, 2026. Petition disposed of accordingly. (Romesh Verma, Judge; decided 06.03.2026.)

2026:HHC:6198

IN THE HIGH COURT OF HIMACHAL PRADESH SHIMLA

Arb. Case No. 591/2024 Decided on: 06.03.2026

Ashwani Kumar & ors. …..Petitioners Versus Union of India & ors. ….Respondents

Coram:

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

Whether approved for reporting?¹

For the Petitioners: Mr. Karun Negi, Advocate.

For the Respondents: Mr. Bharat Bhushan, Senior Panel Counsel for respondent No.1. Ms. Shreya Chauhan, Advocate, for respondent No. 2.

Mr. Diwakar Dev Sharma, Addl. A.G. for respondents No. 3 and 4.

Romesh Verma, Judge (oral)

The present petition under Section 29-A (5) of the Arbitration and Conciliation Act, 1996 has been filed by the petitioners seeking extension of time for completion of the arbitration proceedings in Arbitration Case No. 400/2018, titled as Ashwani Kumar & anr. vs. Union of India & ors. pending before the learned Divisional Commissioner Shimla,

1Whether reporters of the local papers may be allowed to see the judgment? Yes.

2

District Shimla, H.P., exercising the powers of Arbitrator under Section 3 of the National Highways Act, 1956.

2 The arbitral dispute has arisen out of the land acquired in District Solan, 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 Case No.400/2018, before the learned Arbitrator-cumDivisional Commissioner, Shimla, 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 2018. According to the petitioners, 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, Shimla, District Shimla, 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

3

an authority, be it an Arbitrator, to do a particular act in a 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, Shimla, District Shimla, 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 Case No.400/2018, on or before 6^th September, 2026.

7 The petition stands disposed of in the aforesaid

terms.

(Romesh Verma) 06.03.2026 Judge

(pankaj)