The High Court granted an extension of the Arbitral Tribunal's mandate to enable the pronouncement of the final award, despite the prior expiration of its one-year term, based on mutual consent.
Mandate of the Arbitral Tribunal extended by two weeks till 13.03.2018 to enable pronouncement of the final award.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED 26.02.2018
CORAM
THE HONOURABLE DR.JUSTICE ANITA SUMANTH
O.P. No.85 of 2018
M/s.RPP Infra Projects Limited, rep. by its Whole Time Director Mrs.A.Nithya S.F.No.454, Raghupathinaikanpalayam, Poondurai Road, Erode-2. .. Petitioner -vs-
1.M/s.NTPC Tamil Nadu Energy Company Ltd., Vallur Thermal Power Project, rep. by its Deputy General Manager
Prayer: Petition filed under Section 29-A(4) of the amended Arbitration Act, 2015 to extend the time limit of the Arbitral Tribunal consisting of respondents 2 to 4 for a further period as deem fit by this Court.
O R D E R
This petition prays for an extension of the mandate of the Arbitral Tribunal in terms of section 29A of the Arbitration and
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Conciliation Act, 1996 (in short 'Act') comprising of respondents 2, 3 and 4 constituted to resolve disputes that have arisen between the parties in terms of clause 34 of the Contract Agreement dated 20.06.2012.
2.Heard Mr.P.J.Rishikesh, learned counsel for the petitioner and Ms.Lilly for M/s.King and Patridge, learned counsel for the respondents.
3.Admittedly, the mandate of the Arbitral Tribunal commenced
on 15.11.2016 and the preliminary sitting of the Tribunal was held on 21.12.2016. The mandate of one year expired on 14.11.2017.
08.01.2018, sought to invoke Bank Guarantee No.57/12 dated 25.06.2012 for a sum of Rs.1,79,10,000/-, presumably, on the basis that the mandate of the Arbitral Tribunal had expired.
restraining the first respondent from invoking the bank guarantee on 8.1.2018, after prior service of the application upon the respondent by
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email.
10.The present request for extension of mandate has been sought in the light of the aforesaid circumstances.
11.A Counter has been filed by the first respondent seriously objecting to the extension sought.
12.Mr.Rishikesh would, at the threshold convey, upon
information received from the Arbitral Tribunal, that the final Award is itself ready for pronouncement. No objection is raised by the respondent to the extension of mandate solely to enable the Tribunal to pass the final award. In such circumstances, the mandate of the Arbitral Tribunal is extended upon consent expressed by both learned counsel, by two weeks, i.e., till 13.03.2018, to enable the pronouncement of final award.
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Dr.ANITA SUMANTH,J.
13.As far as the interim order obtained from the Tribunal with regard to the bank guarantee, Ms. Lilly has placed on record a copy of Demand Draft dated 08.01.2018 bearing No.991942 issued by the Indian Overseas Bank, to the effect that the Bank Guarantee had been invoked on 08.01.2018 even prior to orders dated 09.01.2018 passed by the Tribunal.
14.Be that as it may and in any event, since the final award is itself imminent, I refrain from dealing any further with the issue of invocation of Bank Guarantee. Suffice it to direct that a status quo be maintained, as of today, in regard to the bank guarantee and the DD
dated 08.01.2018 issued by the Indian Overseas Bank.
15.This petition is disposed of in the above terms. No costs.
26.02.2018
vga/sl Note: Issue order copy on 27.02.2018
O.P. No.85 of 2018
2 issues framed by the court
Whether the mandate of the Arbitral Tribunal should be extended to enable the pronouncement of the final award after its expiration.
Whether the court should deal with the invocation of the Bank Guarantee in the context of the expedited extension of the tribunal's mandate.
3 provisions across 2 enactments
M/s.RPP Infra Projects Limited
M/s.NTPC Tamil Nadu Energy Company Ltd.
Justice T.Somasundaram (Retd.)
Justice K.Mohan Ram (Retd.)
Justice Aruna Jagadeesan (Retd.)
ANITA SUMANTH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
