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CORAM:
JUSTICE PRATHIBA M. SINGH
JUDGMENT
Prathiba M. Singh, J.
12. Following the above order, vide letter dated 9th August, 2023, L&T
sought the consent of IICL’s Liquidator for a six-month extension of the
Arbitral Tribunal's mandate under Section 29A(3) of the 1996 Act.
However, as per the petition, the IICL did not reply to their request. Hence
the present petition, seeking extension of the mandate of the Tribunal in
terms of Section 29A(4) of the 1996 Act.
13. The background of this petition is that the L&T was awarded the LoI
dated 5th October, 2010 in respect of the Thermal Power Plant located at
Nandgaon Peth, MIDC Area, District Amravati, Maharashtra, India
(hereinafter, ‘Amravati Project’). The LoA is dated 19th October, 2010 with
respect to the said Amravati Project. Further, in pursuance of LoI and LoA,
two contracts were entered into between the parties, i.e., a Supply Contract
dated and a Service Contract both dated 18th February, 2011. Respondent
No. 1 is IICL, and Respondent No. 2 is RPL. As per the petition, in 2010,
RPL initiated the said Amravati Project, for which IICL invited bids.
14. According to the L&T, the Amravati Project was concluded and the
plant was commissioned on 30th March, 2015. Thereafter, in terms of the
LoI and the LoA, payments were due to L&T, which were allegedly not paid
by the Respondents- IICL and RPL, due to which L&T invoked the
arbitration proceedings on 26th February, 2020 in terms of Clause 11.0 of
the General Conditions of Contact (hereinafter, ‘GCC’).
15. The Arbitral Tribunal was constituted on 19th May, 2020, headed by
a retired Supreme Court Judge and two retired Delhi High Court Judges.
Proceedings commenced on 8th June, 2020. During the arbitral proceedings,
RPL filed an application under Section 16 of the 1996 Act on 21st October,
2020, seeking the dismissal of the claims. The said application was
dismissed by the Arbitral Tribunal vide order dated 1st March, 2021.
16. In the arbitral proceedings, issues were framed on 15th June, 2021. On
20th September, 2021, IICL, went into insolvency, and a moratorium was
imposed under Section 14 of the Insolvency and Bankruptcy Code, 2016 in
19. The above order is stated to have not been challenged by any party
and has attained finality.
20. After the petition's revival was permitted on 13th July, 2022 qua RPL,
evidence from the parties was presented. L&T's evidence concluded on 11th
January, 2023, and the RPL did not lead any evidence. According to L&T,
the original 12-month deadline for issuing an arbitration award, as mandated
by Section 29A(1) of the 1996 Act, was extended due to the order of the
Supreme Court dated 10th January, 2022 in Suo Moto Writ Petition (C) No.
3/2020, which excluded the period from 15th March, 2020, to 28th February,
2022 from limitation. The said extension resulted in the new deadline
expiring on 28th February, 2023. Thereafter, in terms of order dated 24th
May, 2023, the L&T and RPL mutually agreed to further extend this
deadline by six months until 31st August, 2023.
21. In the meantime, vide judgment dated 30th May, 2023, in Shapoorji
Pallonji Company Pvt. Ltd. v. Elena Power and Infrastructure Limited
[O.M.P.(MISC.)(COMM.) 95/2023, decision dated 30th May, 2023], this
Court held that extending the Tribunal's mandate requires the consent of all
parties involved, as per Section 29A (3) of the 1996 Act. As per the L&T,
RPL highlighted the said decision before the Arbitral Tribunal and filed an
application on 17th July, 2023 arguing that the Tribunal's mandate had
49. The said decision was also followed by another ld. Single Judge of
this Court in ATC Telecom Infrastructure Pvt. Ltd. v. Bharat Sanchar
Nigam Ltd. [2023:DHC:8078]. The Court, followed the decision in Wadia
Techno-Engineering Services Limited (supra), and underscored that
Section 29A of the 1996 Act aims to prescribe and regulate arbitral
proceedings' timelines, offering flexibility for time extensions in appropriate
51. On the above aspect, the Kerala High Court in Hiran Valiiyakkil Lal
v. Vineeth M.V., (2023 SCC Online Ker 5151) observed as under: