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Under Section 29A(4), if the award is not made within the period specified in sub-section (1) or the extended period under sub-section (3):
A{'text': 'The award shall be deemed to have been made in favour of the claimant by operation of law under any law in force in any State of India regardless of any other consideration', 'label': 'A'}
B{'text': 'The mandate of the arbitrator(s) shall terminate unless the Court has, either prior to or after the expiry, extended the period', 'label': 'B'}
C{'text': 'The matter shall be transferred to the Supreme Court of India for adjudication under any law in force in any State of India regardless of any other consideration of any kind', 'label': 'C'}
D{'text': 'The matter shall be transferred to the High Court of the relevant State for adjudication under any law in force in any State of India regardless of any other consideration of any kind', 'label': 'D'}
Answer & Solution
Correct answer: B. {'text': 'The mandate of the arbitrator(s) shall terminate unless the Court has, either prior to or after the expiry, extended the period', 'label': 'B'}
1. Section 29A(4) of the Act provides for what happens on failure to meet the time-limit under Section 29A(1) or the consent-extension under Section 29A(3).
2. "The **mandate of the arbitrator(s) shall terminate** unless the Court has, either prior to or after the expiry of the period so specified, extended the period."
3. The extension may carry penalties — the Court may reduce the arbitrators' fees by up to **5% per month of delay** if the delay is attributable to the tribunal.
4. The arbitrator must be given an opportunity of being heard before fees are reduced.
_Source: ICSI CS Executive Paper 1 — Jurisprudence, Interpretation & General Laws, Lesson 13 (Arbitration and Conciliation Act, 1996), pp. 314-333._
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