2024 INSC 686 – Rohan Builders (India) Pvt. Ltd. vs. Berger Paints India Ltd.: In this judgment, the Supreme Court of India addressed whether an application for extending the time period for passing an arbitral award under Section 29A of the Arbitration and Conciliation Act, 1996, can be filed after the expiry of the stipulated period. The Court held that such an application is indeed maintainable even after the initial twelve-month period or the extended six-month period has lapsed. Previously, the Calcutta High Court had ruled that extensions must be sought before the arbitral tribunal’s mandate expired. However, the Supreme Court emphasized that the power to extend time is vested in the court, which can be exercised for “sufficient cause.” This ruling underscores the need for flexibility in arbitration proceedings, highlighting that strict adherence to procedural timelines should not override the practical need for fair and effective dispute resolution. By permitting extensions post-expiry, the Court aims to balance the necessity for timely awards with the realities of arbitration, thereby aligning with the legislative intent to facilitate arbitration as an efficient and flexible process, free from overly rigid procedural constraints.
