Section 29A(3) of Arbitration Act is mandatory

Section 29(3) of Arbitration Act – Mandate of Arbitrator

The petitioner filed the petition under Section 29A(1)(2) read with Section 29(4)(5) of the Arbitration Act for extension of time to pass arbitral award in the background of following facts 

By the order dated 19.9.2018, the Arbitrator was appointed by the High Court.

On 19.9.2018, before expiry of 12 months period of appointment of Arbitrator, the parties filed join purshis and extended the time limit by six months for continuation of arbitral proceedings.

By the order dated 11.12.2020, the High Court had extended the time till 31.3.2020 due to pandemic.

However, in view of the order dated 10.1.2022 on extension of limitation passed by the Supreme Court, the time for the mandate of the arbitration would expire May, 2022.

However, even after May, 2022, the proceedings were continued and preliminary award was passed on 15.9.2022.

The contention of the petitioner was that the proceedings taken after expiry of arbitration mandate are to be taken account for extension of time to pass arbitral award and in that event, to appoint the substituted arbitrator.

HELD that the participation of the respondent in the proceedings after expiry of mandate would not amount to waiver under Section 4 of the AA, it cannot be held that there was waiver of valuable rights when the circumstances show that what was done was involuntary, the respondent had no choice but to participate in the arbitration and considering that the parties are ad idem that a substituted arbitrator was appointed by extending six months period for final arguments and arbitral award.

Arbitration Petition No.125 of 2023 – Mahaveer Realities & Ors Vs. Shirish J. Shah

Order dated 21.7.2023 of the High Court of Bombay