SHYAM TELECOM LTD Vs. ARM LTD

JUDGEMENT

(1.) . A short but important question - 'whether the mandate of an arbitrator terminates on the expiry of the stipulated period for making the award within the meaning of Section 14 of the Arbitration & Conciliation Act, 1996? has arisen for determination in this case.

(2.) M/s. Shyam Telecom Ltd / petitioner has filed this petition under Section 14 (2) of the Arbitration and Conciliation Act, 1996 (to be called as the Act) for declaring that the mandate of the sole Arbitrator has terminated on 14.11.200 on the expiry of six months period for making the award mentioned in Clause 3 of Article IV of Divestment Agreement and consequently the arbitration proceedings and the mandate of the Arbitrator had come to an end.

(3.) The relevant facts, in brief, are that the parties had entered into a Divestment Agreement in 1997. Clause 3 of Article IV of the Divestment Agreement inter-alia contains an Arbitration Agreement for reference of the disputes between the parties through Arbitration. The said clause reads as under: "In the event of any dispute, difference of claim arising out of or in connection with or in relation to this Agreement then as such disputes shall be referable to the sole arbitration of a mutually agreed Arbitrator. The arbitrator shall conduct the arbitration in accordance with the provisions of the arbitration and Conciliation Act, 1996 or any statutory modification thereof. The arbitrator shall make and pronounce a reasoned award. The arbitrator shall render his award within a period of 6 months from the date of entering upon reference. The arbitrator shall be entitled to award interest during the pendency of the arbitration and pendente lite any proceedings arising therefrom. The arbitrator shall file his award in the courts at Delhi. The Agreement shall be specifically enforceable, by an injunction, or a claim in damages, or both."