UNION OF INDIA Vs. VALECHA SHIVALAYA INTERDRIL

JUDGEMENT

(1.) The learned Commercial Court at Gangtok, has set aside the arbitral award dtd. 23/2/2023 on the ground that the sole Arbitrator had become functus officio after the period provided under Sec. 29(A)(4) of the Arbitration and Conciliation Act, 1996 (for short, the Arbitration Act) [as amended by the Arbitration and Conciliation (Amendment) Act, 2015 (for short, the 2015 Amendment)] was over and the arbitral award passed on 23/2/2023 was consequently non-est in law and unenforceable. The learned Commercial Court relied upon the judgment of the High Court of Telangana at Hyderabad in the matter of Roop Singh Bhatty vs. Shriram City Union Finance Limited 2022 SCC OnLine TS 1049, in support of its opinion.

(2.) The Union of India is aggrieved by the impugned judgment and order dtd. 9/2/2024 passed by the learned Commercial Court at Gangtok. It is submitted that since the arbitration proceeding was pending as on 30/8/2019 when the Arbitration and Conciliation (Amendment) Act, 2019 (for short, the 2019 Amendment) came into force, Sec. 29-A as amended by the 2019 Amendment, would be applicable.

(3.) As per the petition, on 15/12/2009, the appellant and the respondent entered into an agreement for formation and surfacing work on Gangtok - Nathula road, Sikkim. On 12/12/2013, the agreement was terminated by the appellant as the work could not be completed within the period of extension. The respondent invoked the arbitration clause and approached the appellant for appointment of an arbitrator. On 21/3/2019, the sole Arbitrator was appointed. On 18/4/2019, communication with regard to the appointment of the arbitrator was made to the parties. On 27/1/2022, pleadings in the arbitration proceeding was completed.