Callous Attitude Of Arbitrator: Himachal Pradesh High Court Criticizes Arbitrator For Not Completing Arbitral Proceedings Within Prescribed Time

The Himachal Pradesh High Court bench of Justice Bipin Chander Negi onus is upon the arbitrator to perform the task entrusted to them within the time schedule prescribed in Section 29A of the Arbitration and Conciliation Act, 1996. The bench noted that criticized an arbitrator appointed by Central Government under the National Highways Act for his callous attitude. The court noted that the arbitrator took upon the task of deciding the arbitration proceedings knowing fully well that if the proceedings are not completed within the time schedule, then unless the same is extended by a Court of Law, the mandate of the Arbitrator shall stands terminated. Brief Facts: The arbitral dispute arose from the acquisition of land of Kamla Devi (Petitioner) in Bilaspur intended for the construction, widening, or four-laning, and the subsequent maintenance, management, and operation of National Highway-21. The acquisition was carried out under the provisions stipulated in the National Highways Act of 1956. The Arbitrator issued notices for 11.10.2019 with the deadline for responses closing on 31.12.2021. The Petitioner filed Reference Petition challenging the award approximately five years ago. A subsequent order dated 26.12.2022 noted the expiration of the Arbitrator's mandate which resulted in the suspension of proceedings. The Petitioner approached the High Court for extension of mandate of arbitrator. Observations by the High Court: The High Court referred to Section 29-A and noted the mandatory timelines for completing pleadings and issuing awards. It observed that these statutory requirements were not adhered to by the Arbitrator who repeatedly adjourned proceedings. The High Court held that statutory obligations under Section 29-A which requires that award shall be made by the arbitral tribunal within a period of twelve months from the date of completion of pleadings must be strictly followed. It highlighted that any delays must be genuine and justifiable. The High Court expressed concern over the Arbitrator's repeated adjournments. The High Court held that: “This Court fails to understand, as to how the Arbitrator can with such a callous attitude take upon the task of deciding the arbitration proceedings knowing fully well that if the proceedings are not completed within the time schedule mentioned in the Act, then unless the same is extended by a Court of Law, the mandate of the Arbitrator shall stands terminated.” The High Court held that future neglect of duties by the Arbitrator could lead to termination of mandate under Section 29(A)(6) of the Arbitration Act notwithstanding the Arbitrator's appointment by the Central Government. Recognizing the rights of the Petitioner, whose land was acquired and who was entitled to fair compensation, the High Court noted that undue prejudice would result if the Arbitrator's failure to meet statutory deadlines led to termination of proceedings. Consequently, the Court allowed the Petitions and directed the Arbitrator to conclude the arbitration proceedings by January 8, 2025. Case Title: Kamla Devi vs Land Acquisition Officer-cum-Competent Authority and another Case Number: Arbitration Case No.573 of 2024 Advocate for the Petitioner: Mr. Varun Rana Advocate for the Respondent: Mr. Raj Kumar Negi, Additional Advocate General, for respondent No.1/State. Ms. Shreya Chauhan and Ms. Sneh Bhimta, Advocates, for respondent No.2. Date of Judgment: 08.07.2024 Click Here To Read/Download Order or Judgment

Callous Attitude Of Arbitrator: Himachal Pradesh High Court Criticizes Arbitrator For Not Completing Arbitral Proceedings Within Prescribed Time

Rajesh Kumar

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