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Showing contexts for: when does arbitrator enter reference in Mohan Lal Fatehpuria vs M/S Bharat Textiles on 10 December, 2025Matching Fragments
4. The sole arbitrator entered the reference on 20.05.2020. He thereafter issued various directions on 03.06.2020, 21.10.2020, 09.01.2021 and on 15.06.2021 and directed the parties to deposit various amounts towards administrative expenses. The respondent nos.2 and 3 questioned the action of the sole arbitrator in demanding administrative expenses, in their applications filed under Sections 14 and 15 of the Act, seeking termination of the mandate of the sole arbitrator. The said applications were dismissed by a common order dated 28.01.2022, passed by the High Court, inter alia on the ground that all the expenses are required to be paid on actuals. It was further held, that, it would be open for respondent nos. 2 and 3 to approach the Arbitral Tribunal, to account for administrative expenses. It was also held that the sole arbitrator is neither de jure nor de facto ineligible to act as an arbitrator. The petitions were dismissed.
“29A. 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.
Explanation.—For the purpose of this sub-section, an arbitral tribunal shall be deemed to have entered upon the reference on the date on which the arbitrator or all the arbitrators, as the case may be, have received notice, in writing, of their appointment.
11. The undisputed facts which emerge from the record before us, are that, the sole Arbitrator entered the reference on 20.05.2020 and directed the parties to file the statements of claim and defence. The period of six months prescribed under Section 23(4) of the Act, for completion of pleadings expired on 19.11.2020. The period from 15.03.2020 till 28.02.2022 deserves to be excluded on account of pandemic caused by Covid-19 virus2. In view of mandate contained in Section 29A(1) of the Act, the sole Arbitrator was under an obligation to pass an award within a period of one year from 01.03.2022, i.e. on or before 28.02.2023. However, the sole Arbitrator failed to do so. The parties did not apply for extension of period to pass an award. The sole arbitrator, COGNIZANCE FOR EXTENSION OF LIMITATION, IN RE (2022) 3 SCC 117 in view of mandate contained in Section 29A(4) became functus officio.