Analysing Jurisprudence on Extension of Arbitrator's Mandate After Expiry of Period U/S 29A of A&C Act
Introduction
Arbitration is a form of alternative dispute resolution (ADR) in which the parties to a dispute agree to submit their dispute to a neutral third party for a binding decision. The arbitrator's mandate is the document that sets out the arbitrator's authority and the scope of the arbitration.
In India, the Arbitration and Conciliation Act, 1996 (A&C Act) governs arbitration proceedings. Section 29A of the A&C Act provides that the arbitrator's mandate expires after a period of 12 months from the date of his appointment, unless the parties agree to extend the mandate.
Extension of Arbitrator's Mandate
The parties may agree to extend the arbitrator's mandate by mutual consent. The extension may be for a specific period or until the completion of the arbitration proceedings.
If the parties fail to agree on an extension, the arbitrator may apply to the court for an extension of the mandate. The court may grant an extension if it is satisfied that there are good reasons for doing so.
Case Law on Extension of Arbitrator's Mandate
There is a body of case law on the extension of arbitrator's mandate under Section 29A of the A&C Act. In one case, the Supreme Court held that the court should not grant an extension of the arbitrator's mandate unless there are compelling reasons to do so.
In another case, the Delhi High Court held that the court may grant an extension of the arbitrator's mandate even if the parties have not agreed to it, if the delay in completing the arbitration proceedings is not attributable to the arbitrator.
Factors to Consider When Extending Arbitrator's Mandate
The following factors should be considered when extending an arbitrator's mandate:
- The reasons for the delay in completing the arbitration proceedings.
- The conduct of the parties during the arbitration proceedings.
- The likely impact of the extension on the parties.
- The availability of alternative dispute resolution mechanisms.
Conclusion
The extension of an arbitrator's mandate is a complex issue that requires careful consideration of all the relevant factors. The courts will only grant an extension if they are satisfied that there are good reasons to do so.
