M/S AJAY PROTECH PVT. LTD. versus GENERAL MANAGER & ANR.

M/S AJAY PROTECH PVT. LTD. versus GENERAL MANAGER & ANR.

Section 29A(4) permits the Court to extend the arbitral tribunal's mandate either before or after expiry of the statutory or extendable period; extension under Section 29A(5) is discretionary and requires sufficient cause. Applying these principles and excluding the pandemic period per Re: Cognizance, and having regard to the parties' agreement to seek extension, there was sufficient cause to extend the mandate; the High Court order dismissing the application was set aside and the period for making the award was extended to 31 December, 2024.

Parties
Appellant: M/s Ajay Protech Pvt. Ltd.; Respondent: General Manager & Anr.
Jurisdiction
India
Judgment Date
22 November 2024
Procedural Posture
Civil Appeal No. 13004 of 2024 / Appeal From the Judgment and Order Dated 03.11.2023 of the High Court of Gujarat at Ahmedabad in MCA No. 1 of 2023
Outcome
Appeal allowed
Legal Topics
Extension of Arbitral Tribunal Mandate, Time Limit for Arbitral Award, Sufficient Cause for Extension, Effect of COVID 19 Pandemic on Limitation, Interpretation of Section 29 a
Arbitration and Conciliation Act, 1996 Limitation Law Extension of Arbitral Tribunal Mandate Time Limit for Arbitral Award Sufficient Cause for Extension Effect of COVID 19 Pandemic on Limitation Interpretation of Section 29 a

Case Brief

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Parties

M/s Ajay Protech Pvt. Ltd.

Appellant

General Manager & Anr.

Respondent

Procedural Posture

Civil Appeal No. 13004 of 2024 / Appeal From the Judgment and Order Dated 03.11.2023 of the High Court of Gujarat at Ahmedabad in MCA No. 1 of 2023

Legal Issues

  1. 1 Whether an application under Section 29A(4) can be entertained if filed after expiry of the Arbitral Tribunal's mandate
  2. 2 Whether the High Court ought to have allowed the application under Section 29A(4) to extend the mandate in the present case

Ratio Decidendi

Section 29A(4) permits the Court to extend the arbitral tribunal's mandate either before or after expiry of the statutory or extendable period; extension under Section 29A(5) is discretionary and requires sufficient cause. Applying these principles and excluding the pandemic period per Re: Cognizance, and having regard to the parties' agreement to seek extension, there was sufficient cause to extend the mandate; the High Court order dismissing the application was set aside and the period for making the award was extended to 31 December, 2024.

Court Disposition

Appeal allowed

Orders

  • Order and judgment of the High Court in MCA No. 1/2023 dated 03.11.2023 set aside
  • Period for making of the arbitral award by the Arbitral Tribunal extended till 31st December, 2024