Case Law Details
Jaypee Infratech Limited Vs Ehbh Services Private Limited And Another (Allahabad High Court)
The Allahabad High Court has referred a crucial question regarding the power to grant time extensions in arbitration proceedings to a larger bench. This question arises from conflicting interpretations of Section 29A of the Arbitration and Conciliation Act, 1996.
The Issue: Section 29A sets a 12-month deadline for arbitrators to issue their award. However, it also allows for extensions upon application by either party or by the “Court.” The question is: which court has the authority to grant such extensions?
Conflicting Views: Two single-judge benches of the Allahabad High Court offered contrasting interpretations. One held that only the Supreme Court or the High Court, depending on who appointed the arbitrator, could grant extensions. The other argued that the “Court” referred to in Section 29A encompasses any court with original civil jurisdiction, including district courts.
Reasoning for Referral: Justice Shekhar B. Saraf, recognizing the potential conflict with Section 11 (which deals with arbitrator appointments by courts) and the lack of legislative clarity, referred the following questions to a larger bench:
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