High Court Not Having Original Civil Jurisdiction Cannot Extend Time To Pass Arbitral Award As Per S.29A(4) Arbitration Act : Supreme Court

The Supreme Court held that a High Court which does not have original civil jurisdiction does not have the power to extend the time limit for passing of the arbitral award as per Section 29A of the Arbitration & Conciliation Act 1996 (“Act”).

The bench comprising Justices Abhay S Oka and Ujjal Bhuyan clarified that as per the mandate of Section 29A (4) of the Act, the power to extend the time limit for passing of the arbitral award vests within the principal Civil Court of original jurisdiction, but there is no impediment for the High Court who is exercising the ordinary original civil jurisdiction to extend the time limit.

Section 29A of the Act being inserted through the 2015 Amendment to the Arbitration and Conciliation Act prescribes a maximum period of 18 months within which the arbitral tribunal has to pass an arbitral award. Sub-section (4) of Section 29A provides power to the civil court having original jurisdiction to extend the time limit for passing of the award if the award was not passed within the prescribed period.

The case emanated from the Meghalaya High Court decision, whereby the High Court rejected the application of the appellant to extend the time limit for passing of the arbitral award. The High Court refused to do so as it didn't have the original civil jurisdiction. Further, it noted that in the event of the High Court not having original civil jurisdiction to extend the time limit, then the appropriate court would be the principal civil court having original jurisdiction to entertain such an application seeking a time limit extension.

Finding no merit in an appeal, the Supreme Court was not inclined to entertain the petition against the High Court's decision and approved the ratio laid down by the High Court.

“The power under sub-Section (4) of Section 29A of the Arbitration Act vests in the Court as defined in Section 2(1)(e) of the Arbitration Act. It is the principal Civil Court of original jurisdiction in a district which includes a High Court provided the High Court has ordinary original civil jurisdiction… In this case, the High Court does not have the ordinary original civil jurisdiction… Hence, there is no merit in the Special Leave Petition. The same is, accordingly, dismissed.”, the court said.

Case Title: CHIEF ENGINEER (NH) PWD (ROADS) VERSUS M/S BSC & C and C JV

Citation : 2024 LiveLaw (SC) 425

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