High Courts Without Original Civil Jurisdiction Cannot Extend Arbitral Award Time Limit: Supreme Court
In the case of Chief Engineer (NH) PWD (Roads) v. M/S BSC & C and C JV, the Supreme Court ruled that High Courts without original civil jurisdiction cannot extend the time limit for passing arbitral awards under Section 29A of the Arbitration & Conciliation Act, 1996.
Key Points from the Judgment:
Jurisdiction Clarification:
Justices Abhay S Oka and Ujjal Bhuyan stated that the power to extend the arbitral award time limit is vested in the principal civil court of original jurisdiction.
High Courts exercising ordinary original civil jurisdiction can extend the time limit, but those without it cannot.
Section 29A Overview:
Inserted by the 2015 Amendment, Section 29A mandates a maximum period of 18 months for passing an arbitral award.
Sub-section (4) allows the original civil court to extend this period if needed.
Case Background:
The Meghalaya High Court rejected the appellant's application to extend the arbitral award time limit, citing its lack of original civil jurisdiction.
The Supreme Court upheld this decision, noting the proper court for such an application is the principal civil court with original jurisdiction.
Supreme Court's Conclusion:
The power under Section 29A(4) rests with the court defined in Section 2(1)(e) of the Act, which includes High Courts with original civil jurisdiction.
The petition against the High Court's decision was dismissed for lack of merit.