Bombay High Court
CEAT LimitedversusAditi Marketing
- Decided
- Disposal
- DISPOSED OFF
- Bench
- ARIF S DOCTOR
Holding
An application under Section 29A(5) for extension of the arbitral tribunal’s mandate is maintainable even after the expiry of the statutory period and after an award has been rendered, and the court may extend the mandate and impose appropriate conditions.
Summary
The petition was filed by Ceat Limited under Section 29A of the Arbitration and Conciliation Act, 1996 seeking an extension of the arbitral tribunal’s mandate after the statutory period had expired. The petitioner relied on an affidavit of service to show that the respondent, Aditi Marketing, had been served but never appeared in the arbitral proceedings. An award was published on 8 June 2026, after the one‑year mandate expired on 20 April 2026, rendering the award ineffective. The petitioner cited the Supreme Court’s decision in C. Velusamy v. K. Indhera, which held that an application under Section 29A(5) for extension is maintainable even after the mandate expires and an award is rendered. The Court, after hearing counsel, agreed that the petition should be allowed and ordered the extension of the tribunal’s mandate as prayed for. The judgment emphasizes the court’s power to extend the mandate, impose conditions, and even substitute arbitrators where necessary.
Issues considered
- Whether an application under Section 29A(5) of the Arbitration and Conciliation Act, 1996 for extension of an arbitral tribunal’s mandate is maintainable after the statutory period has expired and an award has been rendered.
- Whether an award passed after the expiry of the mandate is ineffective and unenforceable.
- Whether the court may impose conditions, reduce fees, or substitute the arbitrator while extending the mandate.
Legislation cited
- Arbitration and Conciliation Act, 1996 — s. 29A(1), 29A(3), 29A(4), 29A(5)
Subjects
- Arbitration
- Section 29A
- Extension of mandate
- Arbitral award unenforceable
- Substitution of arbitrator
- Service of notice
- Non‑appearance
Judgment
1/3 15-ARBP-388-2026 (OS).DOC
Digitally
signed by
MOHAMMAD
AREEB
MOHAMMAD
AREEB
MOHD
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
MOHD AKBAR
AKBAR Date:
2026.08.10
14:46:56
ORDINARY ORIGINAL CIVIL JURISDICTION
+0530
ARBITRATION PETITION NO. 388 OF 2026
Ceat Limited ...Petitioner
Versus
Aditi Marketing ...Respondent
_______
Mr. Zerick Dastur a/w Ms. Archana U. for the Petitioner.
_______
CORAM : ARIF S. DOCTOR, J.
DATE : 6th AUGUST, 2026
P.C.
1. The present Petition is filed under Section 29A of the Arbitration and
Conciliation Act, 1996 seeking extension of the mandate of the Arbitral
Tribunal.
2. Learned Counsel appearing on behalf of the Petitioner has placed reliance
upon an Affidavit of Service to establish service upon the Respondent. The
Affidavit of Service shall be filed in the Registry.
3. Learned Counsel further submits that the Respondent did not appear at
any stage of the arbitral proceedings. He further submits that the arbitral award
has since been published.
4. It is submitted that the statutory period of one year expired on 20 th April
2026, whereas the arbitral award came to be published on 8 th June 2026.
Learned Counsel has placed reliance upon the decision of the Hon'ble Supreme
Court in C. Velusamy v. K. Indhera in support of the proposition that, even in
Areeb
2/3 15-ARBP-388-2026 (OS).DOC
such circumstances, this Court is empowered to extend the mandate of the
Arbitral Tribunal in the interests of justice.
5. In support of his contention, learned Counsel has invited my attention to
paragraphs 21, 22 and 23 of the aforesaid decision, which read thus:
“21. In view of the above analysis, we are of the opinion that provisions of
the Act, particularly Section 29A, must not be interpreted to infer a
threshold bar for an application under Section 29A(5) for extension of the
mandate of the arbitrator even when an award is passed, though after the
expiry of the mandate.
22. While interpreting an enactment providing legal remedies for the
resolution of disputes, a constitutional court has the obligation to ensure
that the provision is: (a) accessible, (b) affordable, (c) expeditious and (d)
cohesive. Accessibility requires the remedy to be easily available25.
Affordability is an aspect that is related to the cost of availing the remedy, it
must be at a reasonable price. Expeditious nature of a remedy is concerned
with the quick disposal and abhors unreasonable delays. Yet another facet
of effective remedy is in its cohesiveness.
23. In conclusion, we hold that an application under Section 29A(5) for
extension of the mandate of the arbitrator is maintainable even after the
expiry of the time under Sections 29A(1) and (3) and even after rendering
of an award during that time. Such an award is ineffective and
unenforceable. But the power of the court to consider extension is not
impaired by such an indiscretion of the arbitrator. While considering the
application, the Court will examine if there is sufficient cause for
extending the mandate, and in the process, it may impose such terms and
conditions as the situation demands. The Court will also take into account
other factors such as reduction of the fee of the arbitrator under proviso to
Section 29A(4) and also impose costs on parties if the fact situation so
demands. Substitution is an option for the Court as the provision itself says,
"it shall be open for the Court to substitute", and it will be exercised
carefully. If the mandate is extended, the arbitral tribunal will pick up the
thread from where it was left, and seamlessly continue the proceeding
from the stage at which the mandate had expired, and conclude within the
time granted.”
6. Having heard the learned Counsel for the Petitioner, and having noted
Areeb
3/3 15-ARBP-388-2026 (OS).DOC
that, despite service, the Respondent has remained absent, I am of the view that
the Petition deserves to be allowed. The Petition is accordingly allowed in terms
of prayer clause (a).
[ARIF S. DOCTOR, J.]
Areeb
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