2025:HHC:24717 IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA Arbitration Case No.222 of 2025 Decided on: 28.07.2025 __________________________________________________________ Ishwar Chand and others ......Petitioners Versus National Highway Authority of India and another ……Respondents For the petitioners: Ms. Madhurika Sekhon Verma and Ms. Geeta Thakur, Advocates. For the respondents: Ms. Sneh Bhimta, Advocate vice Ms. Shreya Chauhan, Advocate, for Respondent No.1-NHAI. Mr. Anish Banshtu and Ms. Ayushi Negi, Deputy Advocate General, for Respondent No.2-State. __________________________________________________________ Coram Hon’ble Mr. Justice Ranjan Sharma, Judge 1 Whether approved for reporting? Ranjan Sharma, Judge Instant petition has been filed under Section 29-A of the Arbitration and Conciliation Act, 1996, for the following reliefs:- “It is, therefore, respectfully prayed that this application/petition may very kindly be allowed and the impugned order dated 15.02.2024 passed in Case No.478/19 may kindly be set aside/ quashed and the time period in this case may kindly be extended and the Ld. Arbitrator-cum- 1 Whether reporters of Local Papers may be allowed to see the judgment? 2025:HHC:24717 - 2 - Divisional Commissioner, Mandi Division Mandi may kindly be directed to decide the case No.478/19 in a time bound manner and justice be done.” 2. At the very outset, Learned Counsel for the petitioner submits that this Court has allowed identical matters granting extension, for continuing the arbitral proceedings, which are pending before the Learned Arbitrator-cum-Divisional Commissioner, Mandi Division, Mandi, Himachal Pradesh. 3. Upon issuance of notice, Ms. Sneh Bhimta, Advocate appearing on behalf of Ms. Shreya Chauhan, Learned Standing Counsel for Respondent No.1-NHAI and Ms. Ayushi Negi, Learned Deputy Advocate General, appearing for Respondent No.2-State, do not dispute this position. 4. On query by this Court, Learned Counsel for Respondent No. 1-NHAI, states that in peculiar fact- situation of instant case, she does not intend to file any reply. Accordingly, this Court, proceeds to dispose of the instant petition, without reply, at this stage itself, which shall only expedite the conclusion of arbitral proceedings, in which the parties herein have 2025:HHC:24717 - 3 - participated since the year 2019 till the passing of Impugned Order on 15.02.2024, [Annexure P-1]. 5. Grievance of the petitioner is that pursuant to passing of the Award by CALA concerned, the parties offered themselves for arbitral proceedings, before Learned Arbitrator-cum-Divisional Commissioner, Mandi, who commenced the arbitral proceedings vide Case No.478/2019 [Annexure P-1]. It is not in dispute that though the arbitral proceedings continued since 2019 when, Learned Arbitrator passed an order on 15.02.2024 [Annexure P-1] for keeping the arbitral proceedings in abeyance. It is in this background, the present petition has been filed, with the prayer to direct the Learned Arbitrator to conclude the arbitral proceedings within a stipulated period in terms of Sections 29 A (4) & 5 of Arbitration and Conciliation Act, by quashing the impugned order dated 15.02.2024 [Annexure P-1], 6. Heard, Ms. Madhurika Sekhon Verma and Ms. Geeta Thakur, Advocates for the petitioner and Ms. Sneh Bhimta, Advocate appearing on behalf of 2025:HHC:24717 - 4 - Ms. Shreya Chauhan, Learned Standing Counsel, for Respondent No.1-National Highway Authority of India [NHAI] and Ms. Ayushi Negi, Learned Deputy Advocate General, for Respondent No.2-State. 7. Learned Counsel for Respondent No.1-NHAI and Ms. Sneh Bhimta, Advocate appearing on behalf of Ms. Shreya Chauhan, Learned Standing Counsel, do not dispute the factual matrix that the arbitral proceedings commenced in the year 2019 and since then, parties have participated in these proceedings. Indisputably in other identical cases, relating to the same subject-land, and arbitral proceedings were kept in abeyance and the mandate was terminated but consequent upon the intervention of this Court, the time for conclusion of the arbitral proceedings was extended and the arbitral process are underway and/or in some case the same have been concluded. 8. As per the mandate of the Hon’ble Supreme Court in TATA Sons Pvt. Ltd. (Formerly TATA Sons Ltd.) vs. Siva Industries and Holdings Ltd. and others, reported in 2023(1) SCALE 2025:HHC:24717 - 5 - 793, the mandate of an Arbitrator is liable to be extended by the Court, under Section 29A(4) and 29A(5) of the Act, in the following terms:- “24 The provisions of Section 29A, as originally introduced into the statute, mandated that all awards shall be made within a period of twelve months from the date on which the arbitral tribunal enters upon the reference. The explanation clarified when the arbitral tribunal would be deemed to have entered upon the reference, namely, the date on which the arbitrator has received written notice of the appointment. The mandatory nature of the provisions of Section 29A(1) and their application to all arbitrations conducted under the Act, domestic or international commercial, was evident from the use of the word “shall”. In terms of Section 29A(4), in case the arbitral award was not rendered within the twelve or eighteen month period as the case may be, the mandate of the arbitrator(s) would stand terminated, unless on an application made by any of the parties, the court extended time on sufficient cause being shown. xxxx. xxx… xxx.. 26. Sub-section (3) of Section 29A empowers parties, by consent, to extend the period specified in sub- section (1) for making the award by a further period not exceeding six months. Thereafter, if the award is not made within the period which is specified in sub-section (1) or the 2025:HHC:24717 - 6 - extended period specified in sub- section (3), the mandate of the arbitrator shall terminate unless the court has extended the period either prior to or after the expiry of the period so specified. In other words, the timeline of twelve months for making the award (in matters other than international commercial arbitration), is qualified by the consensual entrustment to the parties under sub-section (3) to extend the period by six months after which the court is empowered in terms of sub- section (4) to extend the period for making the award. The submission of the second respondent is that the provisions of sub-section (3) and sub- section (4) must also apply to an international commercial arbitration. This would merit close scrutiny. The legislature has not expressly excluded the applicability of sub-sections (3) and (4) of Section 29A to an international commercial arbitration. But, at the same time, it must be noticed that the rationale underlying sub-section (3) is to ensure that despite the stipulation of twelve months for the making of an arbitral award in the domestic context, parties may by consent agree to an extension of time by a further period of six months. Such an extension of six months is envisaged in the case of a domestic arbitration since there is a mandate that the award shall be made within a period of twelve months. A further extension has, however, been entrusted to the court in terms of sub-section (4) of Section29A. However, insofar as an 2025:HHC:24717 - 7 - international commercial arbitration is concerned, the statutory regime is clear by the substantive part of sub-section 1 of Section 29A in terms of which the timeline of twelve months for making an arbitral award is not applicable to it. In an international commercial arbitration, the legislature has only indicated that the award should be made as expeditiously as possible and that an endeavour may be made to dispose of the matter within a period of twelve months from the completion of pleadings.” (emphasis supplied) 8(i). While dealing with a similar situation, the Hon’ble Supreme Court, in Civil Appeal No.10620 of 2024 [Arising out of Special Leave Petition (Civil) No.23320 of 2023] titled as Rohan Builders (India) Private Limited versus Berger Paints India Limited, decided on 12.09.2024, has reiterated that mandate of an Arbitrator is liable to be extended in view of sufficient cause to the satisfaction of the Court, in the following terms:- “15. Rohan Builders (India) Pvt. Ltd. (supra) highlights that an interpretation allowing an extension application post the expiry period would encourage rogue litigants and render the timeline for making the award inconsequential. However, it is apposite to note that under Section 29A(5), the power of 2025:HHC:24717 - 8 - the court to extend the time is to be exercised only in cases where there is sufficient cause for such extension. Such extension is not granted mechanically on filing of the application. The judicial discretion of the court in terms of the enactment acts as a deterrent against any party abusing the process of law or espousing a frivolous or vexatious application. Further, the court can impose terms and conditions while granting an extension. Delay, even on the part of the arbitral tribunal, is not countenanced.28 The first proviso to Section 29A(4) permits a fee reduction of up to five percent for each month of delay attributable to the arbitral tribunal. 16. Lastly, Section 29A(6) does not support the narrow interpretation of the expression “terminate”. It states that the court – while deciding an extension application under Section 29A(4) – may substitute one or all the arbitrators. Section 29A(7) states that if a new arbitrator(s) is appointed, the reconstituted arbitral tribunal shall be deemed to be in continuation of the previously appointed arbitral tribunal. This obliterates the need to file a fresh application under Section 11 of the A & C Act for the appointment of an arbitrator. In the event of substitution of arbitrator(s), the arbitral proceedings will commence from the stage already reached. Evidence or material already on record is deemed to be received by the newly constituted tribunal. The aforesaid deeming provisions underscore the legislative intent to 2025:HHC:24717 - 9 - effectuate efficiency and expediency in the arbitral process. This intent is also demonstrated in Sections 29A(8) and 29A(9). The court in terms of Section 29A(8) has the power to impose actual or exemplary costs upon the parties. Lastly, Section 29A(9) stipulates that an application for extension under sub- section (5) must be disposed of expeditiously, with the endeavour of doing so within sixty days from the date of filing. 17. As per the second proviso to Section 29A(4), the mandate of the arbitral tribunal continues where an application under sub-section (5) is pending. However, an application for extension of period of the arbitral tribunal is to be decided by the court in terms of sub-section (5), and sub- sections (6) to (8) may be invoked. The power to extend time period for making of the award vests with the court, and not with the arbitral tribunal. Therefore, the arbitral tribunal may not pronounce the award till an application under Section 29A(5) of the A & C Act is sub-judice before the court. In a given case, where an award is pronounced during the pendency of an application for extension of period of the arbitral tribunal, the court must still decide the application under sub-section (5), and may even, where an award has been pronounced, invoke, when required and justified, sub-sections (6) to (8), or the first and third proviso to Section 29A(4) of the A & C Act. 18. While interpreting a statute, we must 2025:HHC:24717 - 10 - strive to give meaningful life to an enactment or rule and avoid cadaveric consequences that result in unworkable or impracticable scenarios. An interpretation which produces an unreasonable result is not to be imputed to a statute if there is some other equally possible construction which is acceptable, practical and pragmatic.” 9. Even a perusal of the Statute prescribes that arbitral proceedings are to be completed within twelve months and the same were extendable by six months with consent of parties. Though, the arbitral proceedings which commenced in the year 2019 were to be completed within eighteen months but they continued till the passing of impugned order on 15.02.2024 [Annexure P-1], whereby, the arbitral proceedings were kept in abeyance on the plea that the mandate of Learned Arbitrator was terminated. Material on record suggests that even after expiry of eighteen months’ period the arbitral proceedings were delayed primarily at the instance of respondents and also due to procedural/administrative delay(s), for which the parties cannot be made to suffer. The parties have neither objected to continuance of 2025:HHC:24717 - 11 - arbitral proceedings beyond permissible period nor placed any material to show that any of the parties had prayed or was granted extension in arbitral proceedings by this Court, earlier. Verdict 9(i). Learned Counsel for Respondent No.1-NHAI fairly states that similar extension was given by judicial intervention of this Court to other similarly placed landowners and therefore, once the parties to the arbitral proceedings, including the Respondent- NHAI had participated in the arbitral proceedings beyond permissible period, therefore, the intent of the Statute [i.e. Arbitration and Conciliation Act] was to be given a meaningful life, so as to make it workable and practicable. Further, once the non- conclusion of arbitral proceedings was not attributable to the petitioner, therefore, the object and intent of the Enactment should be to make it practical and pragmatic, so as to enable the parties to settle their disputes by alternative resolution, in an effective, efficient and expedient manner by arbitration. In these circumstances, sufficient cause for 2025:HHC:24717 - 12 - enlargement of time in concluding the arbitral proceedings is made out, in facts of instant case. 9(ii). Parties are also ad-idem, that the matter in principle, is squarely covered by the judgment of this Court in Arbitration Case No.22 of 2025, titled as Ghanshyam Mahajan Versus Land Acquisition Officer-cum-Competent Authority & Ors., decided on 07.03.2025. Likewise, Learned Counsel(s) place reliance on the judgment Arbitration Case No.811 of 2024, titled as Hari Ram Versus Collector Land Acquisition National Highways Authority of India & Others, decided on 20.06.2025 and Judgment in Arbitration Case No.126 of 2025 titled as Hari Singh Saini & Anr. Versus Land Acquisition Officer& Another, decided on 27.06.2025, whereby, the mandate of Learned Arbitrator was extended by this Court, with directions to conclude the arbitral proceedings within six months, from the date of receipt of copy of the judgment. 10. Taking into account the entirety of the facts and circumstances, and the object and intent 2025:HHC:24717 - 13 - of arbitral proceedings, this Court disposes of the instant petition, in the following terms:- (i) Order dated 15.02.2024 [Annexure P-1], in Petition No.478 of 2019 passed by the Learned Arbitrator-cum-Divisional Commissioner, Mandi Division, Mandi, in case titled as Ishwar Chand Versus Land Acquisition Officer, Bilaspur, is quashed and set aside; (ii) Learned Arbitrator-cum- Divisional Commissioner, Mandi Division, Mandi, is mandated to complete the arbitral proceedings and to pass the Award, in accordance with law within six months from the date of receipt of copy of this judgment; and (iii) Costs made easy for respective parties. 11. In aforesaid terms, the instant petition and all pending miscellaneous application(s), if any, shall also, stand disposed of, accordingly. (Ranjan Sharma) Judge July 28, 2025 [Bhardwaj]