S.29A Arbitration Act | Who Has Power To Hear Time Extension Application When Arbitrator Appointed By SC/HC/Parties? Allahabad HC Refers Question To Larger Bench
1 year ago

S.29A Arbitration Act | Who Has Power To Hear Time Extension Application When Arbitrator Appointed By SC/HC/Parties? Allahabad HC Refers Question To Larger Bench

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The Allahabad High Court has referred the question whether application under Section 29A of the Arbitration and Conciliation Act, 1996 for time extension can only be heard by the Supreme Court or the High Court where the appointment of such arbitrator has been made by the Supreme Court or the High Court, as the case may be. Avas Vikas Parishad and Others had held that since the Allahabad High Court does not exercise ordinary original civil jurisdiction, an application under Section 29A of the Act would not lie before this High Court. Accordingly, due to conflicting views of the Single Judge Benches of the Allahabad High Court, Justice Shekhar B. Saraf referred the following questions of law to a larger bench: “1.Whether in a case where the appointment of the arbitrator has been made by the Supreme Court or the High Court, it is only the Supreme Court or the High Court, respectively, that can hear an application under Section 29A of the Act? Whether in a case where the appointment of the arbitrator was made under the agreement contained between the parties and not by the High Court or Supreme Court, the Court as defined under Section 2 of the Act can exercise the powers under Section 29A of the Act, including the power of substitution contained in Section 29A of the Act?” Factual Background Applicant entered into a rent agreement with M/S Ehbh Services Private Limited-Opposite Party No.1 for setting up such dhabas along the Yamuna Expressway. “Legislature never intended to bestow the power of appointment of the arbitrator to the Civil Courts/Commercial Courts, and giving the Civil Courts/Commercial Courts, the power to substitute an arbitrator under Section 29A of the Act when the original appointment was made by the Supreme Court or the High Court would amount to defeating the intent of the legislature,” observed Justice Saraf.

History of this topic

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