Delhi High Court Allows Extension Of Arbitrator's Mandate Despite Post-Expiry Filing U/S 29A Of Arbitration Act

Further, the court observed that this question is still pending before the Supreme Court due to a conflict of decisions of different High Courts, the view taken by Delhi High Court has not been stayed.

Brief facts of the case:

The petitioner has filed a petition under Section 29A of the Arbitration and Conciliation Act, 1996, for extension of the mandate of an arbitrator appointed following a court order dated 09.11.2022. Both parties have concluded their arguments, and the award was also reserved. Furthermore, the respondent objected on the grounds that the petition was filed after the mandate of the arbitrator expired on 03.09.2024.

Observation of the court:

The Court noted that the main argument raised by the respondent was that the petition was filed after the mandate of the arbitrator expired on 03.09.2024. However, the court relied on the judgment in ATC Telecom Infrastructure (P) Ltd. v. BSNL and Wadia Techno-Engineering Services Ltd. v. Director General of Married Accommodation Project, wherein it was held that a petition filed under Section 29A of the Act is maintainable even if it is filed after the expiry of the arbitrator's mandate.

Moreover, the court observed that this question is still pending before the Supreme Court due to the conflict of decisions of different High Courts, the view taken by the Delhi High Court has not been stayed. As a result, the petition was allowed because the respondent had not raised any other objection, and the mandate of the arbitrator was extended.

Case title: SWARANJIT SINGH NARULA SECURITY AGENCY v. NTPC LIMITED

Case Number: O.M.P.(MISC.)(COMM.) 722/2024

Date: 12.09.2024

Advocates for the Petitioner: Mr. Tarun Bhatt, Advocate.

Advocates for the Respondent: Mr. Anish Gupta and Ms. Raina Anand, Advocate.

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