Himachal Pradesh High Court
M/S Puri Oil Mills Ltd vs H.P. State Electricity Board Limited on 18 March, 2021
Author: Vivek Singh Thakur
Bench: Vivek Singh Thakur
IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
Arb. Case No. 24 of 2021
Date of decision: 18.3.2021
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M/s Puri Oil Mills Ltd. ...Petitioner.
Versus
H.P. State Electricity Board Limited. ...Respondent.
Coram
The Hon'ble Mr. Justice Vivek Singh Thakur, Judge.
Whether approved for reporting?1
For the Petitioner: Ms.Shruti Pundiar, Advocate, vice
r Ms.Vandana Kuthiala, Advocate.
For the Respondent: Mr.Atul Verma, Advocate, vice Mr.Tara
Singh Chauhan, Advocate.
Vivek Singh Thakur, Judge (oral)
This application has been filed for extension of period to complete the arbitration proceedings by invoking provisions of Section 29-A (4) of the Arbitration and Conciliation Act, 1996 (herein after referred to be the "Act" for short).
2. It is stated in the application that learned arbitrator had entered reference in the arbitral proceedings on 15.5.2019 and had issued notice to the parties, which was duly received by parties on or before 30.5.2019. The time prescribed to conclude the arbitration proceedings under the Act is 12 months and thus it has expired in May, 2020. Further it is submitted that arbitration proceedings could not be concluded on account of complete lock down in the entire country in the month of March, 2020 on account of COVID-19 pandemic. It is further submitted that at the time of appointment of Arbitrator H.P. Electricity Regulatory Commission has directed the sole arbitrator to expedite the proceedings so as to complete the arbitration process Whether the reporters of the local papers may be allowed to see the Judgment? Yes ::: Downloaded on - 18/03/2021 20:26:13 :::HCHP 2 Arb. Case No. 24 of 2021 within four months and pass a reasoned award under the Act. It is submitted on behalf of petitioner that prescribing the time limit less than the time limit provided under the statute is contrary to law and .
further that proceedings before the Arbitral Tribunal are going on and are at the stage of recording evidence and both the parties have filed their evidence in-chief by way of affidavits in support of their respective claims/defence and substantive witnesses of petitioner have been duly examined in-chief, cross-examined and discharged in the arbitral proceedings. It is further stated that mandate of learned Arbitrator would have expired by efflux of time on or about 30th May, 2020, i.e. within 12 months after having entered in arbitral proceedings. Considering the extra ordinary circumstances prevailing in the world on account of COVID-19 pandemic, the Supreme Court has taken suo motu cognizance and has passed an order on 23.3.2020 in Sou Motu Writ Petition No. 3 of 2020, directing that a period of limitation in all proceedings, irrespective of the limitation prescribed under the general law or special law, whether condonable or not, shall stand extended w.e.f. 15th March, 2020 till further orders to be passed by the Supreme Court in this Suo Motu Writ Petition and this order has been made binding on all Courts, Tribunals and other authorities within India. On 6.5.2020, the Supreme Court has directed that period of limitation prescribed under Arbitration and Conciliation Act, 1996 and under Section 138 of Negotiable Instruments Act, 1881 shall also stand extended w.e.f. 15.3.2020 till further orders to be passed by the Supreme Court in aforesaid Suo Motu Writ Petition. It has also been clarified by the Supreme Court that in case limitation has expired after 15.3.2020, then period from 15.3.2020 till date on which lock down is ::: Downloaded on - 18/03/2021 20:26:13 :::HCHP 3 Arb. Case No. 24 of 2021 lifted in the jurisdictional area where dispute lies or where the cause of action arises, shall be extended for a period of 15 days after the lifting of lock down. On 10.7.2020, the Supreme Court has clarified that .
Section 29A of the Arbitration and Conciliation Act, 1996 does not prescribe a period of limitation but fixes a time to do certain acts, i.e. making an arbitral award within a prescribed time, therefore, it has been directed that the previous orders passed by Supreme Court in Suo Motu Writ Petition shall also apply for extension of time limit for passing arbitral award under Section 29A of the said Act.
3. It is submitted on behalf of applicant that in view of the fact that COVID-19 pandemic is still surging after some intervals of its low tides, formal order for lifting of lockdown is yet to be passed in the State of Himachal Pradesh. Till date only relaxation in the lockdown has been notified vide various notifications/orders/directions of the Government.
4. Considering the entire facts and circumstance narrated in the application and orders passed by the Supreme Court referred supra, I am of the considered view that delay in concluding the arbitration proceedings is neither intentional nor willful and it cannot be attributed either the parties or to learned Arbitrator. Therefore, application is allowed and time to conclude the proceedings is extended up to 30th September, 2021, as prayed.
The application is allowed and disposed of.
(Vivek Singh Thakur), th 18 March, 2021 Judge.
(Keshav) ::: Downloaded on - 18/03/2021 20:26:13 :::HCHP