Buoyant Technology Constellations Pvt. Ltd. Vs Manyata Infrastructure Developments Pvt. Ltd. (Karnataka High Court)
The Karnataka High Court recently addressed a crucial aspect regarding arbitration proceedings in the case of Buoyant Technology Constellations Pvt. Ltd. vs. Manyata Infrastructure Developments Pvt. Ltd. The court deliberated on whether the period during which the proceedings before the Arbitral Tribunal were stayed should be excluded from the calculation of the twelve-month period for making an award under Section 29A(1) of the Arbitration and Conciliation Act, 1996.
Detailed Analysis: The petitioner, also the respondent before the Arbitral Tribunal, challenged the Tribunal’s order directing them to keep witnesses present and declaring the termination of the Tribunal’s mandate. The court examined the timeline of events, including the filing of pleadings, objections, and counterclaims, along with the subsequent proceedings in the High Court and the National Company Law Tribunal (NCLT).
Key arguments centered around the interpretation of Section 29A of the 1996 Act, which mandates the completion of an award within twelve months from the date of completing pleadings. The petitioner contended that the period should commence from the date of filing objections to the counterclaim. Conversely, the respondents argued for the inclusion of the period for which proceedings were stayed due to NCLT proceedings.
