Delhi High Court: In an application filed by counter-claimant under Section 29A of the Arbitration & Conciliation Act, 1996 (‘Arbitration Act’) read with Section 151 of the Code of Civil Procedure, 1908, Manoj Jain, J., held that the Court is empowered to extend the mandate, even after expiry of the mandate of the arbitral tribunal.
Background
The claim had been filed before the arbitral tribunal by SS Steel Fabricators & Contractors, the claimant, however, such claim stood terminated on 10-05-2023. The respondent i.e. the counterclaimant herein, filed a counterclaim before the tribunal against which the claimant was proceeded against ex parte.
It was contended by the counterclaimant that the pleadings with respect to the counter claim were completed on 15-03-2023, and that the counterclaimant had pursued the matter before the tribunal with utmost diligence, without any intention of delaying the matter.
It was further submitted by the counterclaimant that due to the reason that the matter was proceed ex parte against the claimant, the counterclaimant had to bear all costs of the proceedings alone, which were otherwise to be shared with the claimant.
It was contended by the counterclaimant that witnesses had been examined, final arguments had also been concluded and that the award was likely going to be pronounced the very next day, hence, the counterclaimant has filed the instant application under Section 29A of the Arbitration Act read with Section 151 of the CPC before the Court, praying for extension of the mandate of the arbitral tribunal.
Decision and Analysis
The Court noted that there was nothing on record to indicate that any delay had been caused by the counterclaimant herein, but, on the contrary, delay in completion of the arbitration proceedings had been caused due to the abject non-cooperation by the claimant.
The Court observed that there is an apparent delay, as the arbitration proceedings should have been completed within 12 months of the completion of pleadings in the counterclaim.
The Court referred to Power Mech Projects Ltd v. Doosan Power Systems India Pvt. Ltd., OMP (Misc.) 6 of 2024, decided on 07-05-2024, wherein it has been held that expression used in Section 29A(4) of the Arbitration and Conciliation Act was “prior to or after expiry of the period so specified”, therefore, the Court was empowered to extend the mandate even after expiry of the mandate of the arbitral tribunal.
Considering the detailed submissions made by the counterclaimant in its application, the Court proceeded to extend the mandate of the arbitral tribunal till 30-06-2024.
[SS Steel Fabricators and Contractors v. Narsing Decor, 2024 SCC OnLine Del 4416, order dated 19-06-2024]
Advocates who appeared in this case:
Advocates for the Applicant/Counterclaimant: Bhuvneshwar Tyagi, Shaiza Gyaspuri, Advocates
Advocate for the Non-Applicant/Claimant: Anand Duggal, Advocate
Buy Arbitration and Conciliation Act, 1996 HERE
