Shipra Estate Limited Vs Indiabulls Housing Finance Ltd. & Anr (Delhi High Court)
The Delhi High Court has granted an extension for an arbitral tribunal’s mandate in the case of Shipra Estate Limited vs. Indiabulls Housing Finance Ltd. & Anr. The court’s decision addresses an application under Section 29A(5) of the Arbitration and Conciliation Act, 1996, seeking to extend the time for the tribunal to pass an award. The petitions involved several entities, including Shipra Estate Limited, which is currently undergoing Corporate Insolvency Resolution Process (CIRP) proceedings.
A key point of contention was a pending order from the National Company Law Appellate Tribunal (NCLAT), which had stayed further steps in the CIRP, and the fact that the claims were intrinsically linked to other parties not under insolvency. The court noted that a petition for extension was maintainable even after the expiry of the initial 12-month period. This was based on the Supreme Court’s ruling in Rohan Builders (India) Private Limited v. Berger Paints India Limited, which held that an application for an extension under Section 29A(4) read with Section 29A(5) is valid even after the statutory time limit has passed.
The Delhi High Court regularized the tribunal’s mandate and extended it until July 31, 2026, to allow for the pronouncement of the award. The court also directed the arbitrator to consider the implications of the NCLAT’s order and the ongoing CIRP proceedings for one of the parties, particularly given the interconnected nature of the claims. The court deferred a decision on an application for impleadment by ARCIL, suggesting the applicant could raise the issue directly with the arbitrator for a final determination. The petitions were disposed of with these observations, clearing the way for the arbitration proceedings to continue despite the procedural complexities.
