TaxTMI 
TaxTMI 
1985 (4) TMI 335
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.... his claim to the tune of Rs. 7,568 and give his award accordingly. The respondent claimed this amount of compensation broadly on two counts : (1) that the sub-Divisional Officer had got certain bridges demolished which according to the respondent had been constructed strictly in terms of the agreement, and (2) that the respondent had also been directed to stop the work. 3. The arbitrator gave his award against the respondent on April 28, 1961, but after the expiry of the prescribed period. It is, however, admitted by the respondent that he participated in the proceedings before the arbitrator even after the expiry of the statutory period. The respondent challenged the award by filing an objection under Section 30 of the Arbitration Act on a number of grounds. On the pleas taken by the respondent the Senior Sub-Judge framed the following four issues : (1) whether the objections were premature, (2) whether the arbitrator had misconducted himself or the proceedings, (3) whether the award was against natural justice, and (4) whether the award was made after inordinate delay. 4. The learned Judge overruled all the objection and upheld the award. Issue No. I was not pressed before....
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.... Section 28(1) of the Arbitration Act and indeed time can be extended by the Court by the exercise of sound judicial discretion. Accordingly the appeal was allowed, the order of the Senior Sub-Judge was set aside and the case was sent back to the trial court for deciding afresh whether it was a fit case for condoning the delay in giving the award by the arbitrator after affording opportunity to the parties to adduce evidence. 9. The State has now conic up in appeal on a certificate granted by the High Court under Article 133(1)(c) of the Constitution, as it then stood. The same points have been reiterated before this Court. Before dealing with the points involved it will be convenient to refer to the relevant provisions of the Arbitration Act. Section 3 reads ; 3. An arbitration agreement, unless a different intention is expressed therein, shall be deemed to include the provisions set out in the First Schedule in so far as they are applicable to the reference. 10. Section 28 reads : 28. (1) The court may, if it thinks fit, whether the time for making the award Ins expired or not and whether the award has been made or not, enlarge from lime to time the time f....
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....n the power of the arbitrator to enlarge the time. This is emphasised by Section 28(2) which provides that even when such a provision giving the arbitrator power to enlarge the time is contained in the agreement, that provision shall be void and of no effect, The headnote of Section 28 brings out the force of this position in law by providing that the power is of the court only to enlarge time for making the award. Sub-section (2) of Section 28, however, indicates one exception to the above rule that the arbitrator cannot enlarge the time, and that is when the parties agree to such an enlargement The occasion for the arbitrator to enlarge the time occurs only after he is called upon to proceed with the arbitration or he enters upon the reference. Hence it is clear that if the parties agree to the enlargement of time after the arbitrator has entered on the reference, the arbitrator has the power to enlarge it in accordance with the mutual agreement or consent of the parties. That such a consent must be a post-reference consent, is also clear from Section 28(2) which renders null and void a provision in the original agreement to that effect . In a sense where a provision is ....
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....age, it still remains n matter of agreement and the rule of estoppel operates, it need be hardly emphasized that the Act has injuncted the arbitrator to give an award within the prescribed period of four month unless the same is extended by the court. The arbitrator has no jurisdiction to make an award after the fixed time. If the award made beyond the time is invalid the parties are not estopped by their conduct from challenging the award on the ground that it was made beyond lime merely because of their having participated in the proceedings before the arbitrator after the expiry of the prescribed period. 18. The policy of law seems to be that the arbitration proceedings should not be unduly prolonged. The arbitrator therefore has to give the award within the lime prescribed or such extended tune as the court concerned may in its discretion extend and the court along has been given the power to extend time for giving the award. As observed earlier, the court has got the power to extend time even after the award has been given or after the expiry of the period prescribed for the award. But the court has to exercise us discretion in a judicial manner. The High Court in our opini....