Meghalaya HC ruled that Commercial Courts can extend arbitrator mandates under Section 29A of the Arbitration Act if justified by circumstances.
Commercial Court Can Extend Arbitrator Mandate Under Section 29A: Meghalaya HC
The Meghalaya High Court held that Commercial Courts have the power under Section 29A of the Arbitration and Conciliation Act, 1996, to extend the mandate of an arbitrator beyond the 12-month deadline when sufficient cause is shown. The Court allowed a belated application for extension due to unavoidable delays in document production.
The petitioner-arbitrator had failed to issue an award within the mandated 12 months and sought an extension after the expiry of the period. While Section 29A sets a strict timeline, the Court observed that procedural rigidity should not defeat justice. It relied on precedent such as *Bir Commercial Pvt Ltd v. West Coast Paper Mills* to uphold judicial discretion in extension matters.
"The object of Section 29A is expeditious disposal, not technical termination of proceedings on account of delay alone."
This decision provides relief to parties and arbitrators facing genuine delays. Practitioners should proactively move for extensions before the 12-month deadline, but may still request condonation of delay with adequate justification.
Citations
- Arbitration and Conciliation Act, 1996, Section 29A
