Sections 2(1)(e) and 29A(4) and (5) of the Arbitration Act, 1996 – Interpretation of “Court” – Extension of time to make award in a case where Arbitrator is appointed by Party
Applicant had invoked arbitration clause 14.1 of the Rent Agreement and by the letter dated 22.6.2019 appointed the Sole Arbitrator.
The Sole Arbitrator had entered the Reference on 25.6.2019. Thereafter, the arbitration proceedings were on various dates and stages.
On 14.6.2022, the opposite party refused to extend the time by another six months. Accordingly, the Sole Arbitrator asked the applicant to take appropriate action. The Applicant, therefore, filed application under Section 29A(4) of the Act for extension of time by another year for completion of the arbitration proceedings.
Section 29A provides that the award shall be made by the arbitral tribunal within a period of twelve months from the date of completion of the pleadings. Sub-section (3) provides that the parties may by consent extend the period by further period by six months for making award. Sub-section (4) provides that the mandate of the arbitrator shall terminate unless the “Court” has further extended the period.
The learned Single Bench has discussed various decisions and also the provisions elaborately and noted the conflicting decision of the Court.
Two important questions are –
(i) Whether in a case where the appointment of the arbitrator(s) has been made by the Supreme Court or the High Court, it is only the Supreme Court or the High Court, respectively, that can hear an application under Section 29A of the Act ?
(ii) Whether in a case where the appointment of the arbitrator(s) was made under the agreement contained between the parties (including statutory appointments under MSMED Act, NHAI Act, etc.) and not by the High Court or Supreme Court, the Court as defined under Section 2(1)(e) of the Act can exercise the powers under Section 29A of the Act, including the power of substitution contained in Section 29A(6) of the Act ?
WebDownloadJudgmentDocument.do (allahabadhighcourt.in)
Order dated 26.2.2024 in Civil Misc. Arbitration Application No.2 of 2022 in M/s.Jaypee Infratech Limited Vs. M/s. EHbh Services Private Limited and another with connected matter.
