Delhi High Court
M/S Kmp Expressways Ltd vs Idbi Bank Limited on 27 January, 2026
$~53
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of decision: 27.01.2026
+ O.M.P.(MISC.)(COMM.) 106/2026
M/S KMP EXPRESSWAYS LTD .....Petitioner
Through: Mr. Deepak Khurana and Mr.
Bhaskar, Advocates.
versus
IDBI BANK LIMITED .....Respondent
Through: Mr. Raunak Dhillon, Ms. Isha
Malik and Ms. Bhawna
Lakhina, Advocates.
CORAM:
HON'BLE MR. JUSTICE HARISH VAIDYANATHAN
SHANKAR
% J U D G E M E N T (Oral)
1. The present Petition has been filed under Section 29A(4) and
Section 29A(5) of the Arbitration and Conciliation Act, 1996 ["the
Act"], seeking an extension of the mandate of the learned Arbitral
Tribunal by a further period of six months with effect from
11.12.2025.
2. The material on record indicates that the parties entered into a
Concession Agreement dated 31.01.2006 ["Concession
Agreement"]. The said Concession Agreement is stated to incorporate
the project documents to be executed between the parties, one of
which was the Substitution Agreement dated 08.01.2007
["Substitution Agreement"], containing the Arbitration Clause for
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adjudication of disputes arising therefrom, under the rules of The
Indian Council of Arbitration ["ICA"].
3. Thereafter, disputes arose between the parties, and consequently
the Petitioner initiated arbitration proceedings on 09.08.2019 by filing
of the Statement of Claim. The Statement of Defense was filed by the
Respondent on 27.12.2019. It is stated that ICA vide its e-mail
communication dated 15.08.2020 informed the parties that the Arbitral
Tribunal stood constituted.
4. It is stated that the pleadings in the arbitration proceedings were
completed on 27.12.2019.
5. Before proceeding further, it is necessary to note the relevant
statutory provision. Section 29-A of the Act prescribes the time limits
for making an arbitral award and stipulates the consequences of non-
compliance. For clarity, Section 29-A of the Act is reproduced below:
"29-A. Time limit for arbitral award.-- [(1) The award in
matters other than international commercial arbitration shall be
made by the arbitral tribunal within a period of twelve months from
the date of completion of pleadings under sub-section (4) of
Section 23:
(2) If the award is made within a period of six months from the
date the arbitral tribunal enters upon the reference, the arbitral
tribunal shall be entitled to receive such amount of additional fees
as the parties may agree.
(3) The parties may, by consent, extend the period specified in
sub-section (1) for making award for a further period not exceeding
six months.
(4) If the award is not made within the period specified in sub-
section (1) or the extended period specified under sub-section (3),
the mandate of the arbitrator(s) shall terminate unless the court has,
either prior to or after the expiry of the period so specified,
extended the period:
Provided that while extending the period under this sub-section,
if the court finds that the proceedings have been delayed for the
reasons attributable to the arbitral tribunal, then, it may order
reduction of fees of arbitrator(s) by not exceeding five per cent for
each month of such delay:
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[Provided further that where an application under sub-section
(5) is pending, the mandate of the arbitrator shall continue till the
disposal of the said application:
Provided also that the arbitrator shall be given an opportunity
of being heard before the fees is reduced.]
(5) The extension of period referred to in sub-section (4) may
be on the application of any of the parties and may be granted only
for sufficient cause and on such terms and conditions as may be
imposed by the Court.
(6) While extending the period referred to in sub-section (4), it
shall be open to the Court to substitute one or all of the arbitrators
and if one or all of the arbitrators are substituted, the arbitral
proceedings shall continue from the stage already reached and on
the basis of the evidence and material already on record, and the
arbitrator(s) appointed under this section shall be deemed to have
received the said evidence and material.
(7) In the event of arbitrator(s) being appointed under this
section, the arbitral tribunal thus reconstituted shall be deemed to
be in continuation of the previously appointed arbitral tribunal.
(8) It shall be open to the Court to impose actual or exemplary
costs upon any of the parties under this section.
(9) An application filed under sub-section (5) shall be disposed
of by the Court as expeditiously as possible and endeavour shall be
made to dispose of the matter within a period of sixty days from
the date of service of notice on the opposite party."
6. The Hon'ble Supreme Court, in Rohan Builders (India)
Private Limited v. Berger Paints India Limited [2024 SCC OnLine
SC 2494], has examined Section 29-A in detail and elucidated its
scope, ambit, and mandate thereof.
7. In the present case, it is stated, in terms of Section 29A(1) of the
Act, the period of twelve months from the date of completion of
pleadings stood computed after excluding the period between
15.03.2020 and 28.02.2022, in view of the orders dated 23.03.2020
and 10.01.2022 passed by the Hon'ble Supreme Court in Suo Motu
Writ Petition (C) No. 3 of 2020 (In Re: Cognizance for Extension of
Limitation). Accordingly, the statutory period of twelve months
expired on 11.12.2022.
8. In view thereof, the Petitioner herein preferred a Petition under
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Section 29A(4) and (5) of the Act, seeking an extension of time for
making the Arbitral Award. The same was allowed by this Court vide
Order dated 20.03.2024, thereby extending the mandate of the learned
Arbitral Tribunal till 31.12.2024.
9. As the arbitral award could not be rendered within the said
period, the Petitioner again approached this Court seeking a further
extension of time for making the award by a further period of eight
months, i.e., till 11.12.2025, in terms of Section 29-A(4) and 29-A(5)
of the Act. The same came to be allowed by this Court vide Order
dated 09.04.2025.
10. The scheme of Section 29-A of the Act does not contemplate
routine or mechanical grant of extension by the Court. The provision
mandates a careful assessment of the progress of the proceedings and
permits extension only in light of the facts and circumstances of each
case.
11. Though the learned Counsel for the Respondent has raised an
objection pertaining to the date of the filing of the present Petition, in
the interest of justice, this Court is of the opinion that the mandate
should be extended.
12. Further, having regard to the fact that the arbitral proceedings
are presently at a fairly advanced stage, that of final arguments, this
Court is of the view that the interest of justice would be served by
extending the mandate of the learned Arbitral Tribunal by a further
period of six months with effect from 11.12.2025.
13. In view of the foregoing, the mandate of the learned Arbitral
Tribunal is extended by a period of six months, i.e., till 11.06.2026.
Accordingly, the period from 11.12.2025 till the date of this order also
stands regularised.
Signature Not Verified
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BHATIA
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14. Accordingly, the present petition, along with pending
application(s), if any, stands disposed of in the above terms.
HARISH VAIDYANATHAN SHANKAR, J.
JANUARY 27, 2026/nd/va/dj Signature Not Verified Digitally Signed By:HARVINDER KAUR O.M.P.(MISC.)(COMM.) 106/2026 Page 5 of 5 BHATIA Signing Date:29.01.2026 16:08:06