Arbitration Update | Time Limit For Passing An Arbitral Award Can Be Extended By The Court

The Supreme Court, in a recent case of Rohan Builders v Berger Paints, has held that an application for an extension of the time period for passing an arbitral award under Section 29A(4) of the Arbitration and Conciliation Act, 1996 (“Act”) read with Section 29A(5) of the Act is maintainable even after the expiry of the 12 months or the extended 6 month period, as the case may be.

Background

The Calcutta High Court in the case of Rohan Builders (India) Pvt. Ltd. v. Berger Paints India Limited had come to a conclusion on 6 September 2023 that the application for extension of time for passing of the arbitral award can only be entertained under Sections 29A(4) and 29A(5) of the Act, if filed before the expiry of the mandate of the arbitral tribunal. When this decision of the Calcutta High Court was challenged before the Supreme Court, the Apex Court took notice that several other High Courts had taken a contrary view, thus requiring a further judicial inquiry