Section 29A Arbitration Act 1996 (inserted by 2015 Amendment) imposes a TIME LIMIT for ARBITRAL AWARD:
Ano limit (cf. Arbitration and Conciliation Act 1996, Section 29A (inserted 2015)) (cf. Arbitration and Conciliation Act 1996, Section 29A (inserted 2015)) (cf. Arbitration and Conciliation Act 1996, Section 29A (inserted 2015))
Bno time limit (cf. Arbitration and Conciliation Act 1996, Section 29A (inserted 2015)) (cf. Arbitration and Conciliation Act 1996, Section 29A (inserted 2015)) (cf. Arbitration and Conciliation Act 1996, Section 29A (inserted 2015))
C5 years (cf. Arbitration and Conciliation Act 1996, Section 29A (inserted 2015)) (cf. Arbitration and Conciliation Act 1996, Section 29A (inserted 2015)) (cf. Arbitration and Conciliation Act 1996, Section 29A (inserted 2015))
D12 MONTHS from the date of constitution of arbitral tribunal (for domestic arbitration; international commercial arbitration is encouraged but not bound by the limit) — extendable by mutual consent for 6 months; further extension only by court for sufficient cause
Answer & Solution
Correct answer: D. 12 MONTHS from the date of constitution of arbitral tribunal (for domestic arbitration; international commercial arbitration is encouraged but not bound by the limit) — extendable by mutual consent for 6 months; further extension only by court for sufficient cause
1. Section 29A Arbitration and Conciliation Act 1996 (inserted by 2015 Amendment) imposes TIME LIMIT for arbitral award.
2. (1) The award shall be made within a period of 12 MONTHS from the date of completion of pleadings under Section 23(4) — i.e., from the date arbitral proceedings effectively commence.
3. (2015 Amendment: 12 months from constitution of tribunal; 2019 amendment shifted reference to date of completion of pleadings.)
4. (3) The parties may, by consent, EXTEND the time by a further period not exceeding 6 MONTHS.
5. (4) If the award is not made within the period specified or extended, the mandate of the arbitrator(s) shall TERMINATE — unless the COURT extends the period for sufficient cause.
6. (5) Court may impose CONDITIONS for extension including reduction of FEES.
7. (6) Court may impose costs against parties / arbitrators for delay.
8. INTERNATIONAL COMMERCIAL ARBITRATION is exhorted (not bound) by 12 months (Section 29A(1) as amended 2019).
9. Hence option B is correct.
_Source: Arbitration and Conciliation Act 1996 (Bare Act) + Mediation Act 2023 — Arbitration and Conciliation Act 1996, Section 29A (inserted 2015)_
Related questions
In SBP & Co. v. PATEL ENGINEERING LTD (2005) 8 SCC 618, the Supreme Court held that the JUSection 28 Arbitration Act 1996 specifies APPLICABLE LAW:Section 39 Arbitration Act 1996 grants the arbitral tribunal LIEN on the:INTERIM AWARD under Arbitration Act 1996:Section 38 Arbitration Act 1996 (DEPOSITS) requires parties to:DOMESTIC ARBITRATION versus INTERNATIONAL COMMERCIAL ARBITRATION:Section 21 Arbitration Act 1996 defines COMMENCEMENT OF ARBITRATION as:Section 43 Arbitration Act 1996 (LIMITATION) provides that the period of LIMITATION ACT 19