TaxTMI 
TaxTMI 
2024 (4) TMI 870
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....ounsel for respondents. Perused the entire writ petition papers. 3. Brief facts for deciding the question involved in the writ petition are that, the petitioner and respondents had entered into MOU and also certain joint development agreements. As there arose certain differences and disputes among the parties, the parties invoked Arbitration Clause initiating Arbitration proceedings to resolve the differences and disputes. The Arbitral Tribunal held its first proceedings on 07.11.2022 and ordered notice to the parties to appear before the Tribunal on 17.11.2022. On 17.11.2022, on hearing the petitioner and respondent, modalities of the proceedings were fixed and the proceedings was adjourned to 05.12.2022 for filing claim statement. It is stated that on 05.12.2022, respondents herein filed claim statement. Thereafter, the proceedings was listed for hearing the I.As filed by the parties and for filing objection statement by the petitioner herein to the claim statement. The petitioner herein filed its objections as well as counterclaim on 27.01.2023. The respondents herein filed its objection to the counterclaim as well as rejoinder on 25.02.2023. Thereafter, the petitioner her....
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....ommenced on 25.02.2023 the date on which the respondents/claimants filed its objection to counterclaim as well as rejoinder. It is submitted that in terms of Section 23 of 1996 Act, pleading before the Arbitral Tribunal would include claim statement and objections to claim statement/counterclaim and objections to counterclaim. Pleadings would not include statement of rejoinder or surrejoinder. Learned senior counsel referring to Section 29A of 1996 Act would submit that the award in matters other than international commercial arbitration shall be made by the Arbitral Tribunal within a period of twelve months from the date of completion of the pleadings under Sub-section (4) of Section 23 of 1996 Act. As the pleadings i.e., filing of claim statement, objections, counterclaim and objections to counterclaim was completed on 25.02.2023, one year period to pass award would commence from the said date. Learned senior counsel would submit that one year period from 25.02.2023 has come to an end on 24.02.2024, as such the Arbitral Tribunal has no jurisdiction to continue the proceedings. It is also submitted that none has obtained extension of time as required under Section 29A(4) and (5) o....
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...., "In the facts and circumstances of the case, whether the Arbitral Tribunal is justified in observing in its order dated 21.03.2024 that arbitral proceedings has commenced on 20.05.2023 and that the period of stay of the proceedings to be excluded for timeline of twelve months for completion of proceedings?" 12. Answer to the above point would be in the Affirmative for the following reasons: (a) The relevant provisions to decide the above issue are Section 23 and Section 29A of the 1996 Act, which reads as follows: "23. Statement of claim and defence.- (1) Within the period of time agreed upon by the parties or determined by the arbitral tribunal, the claimant shall state the facts supporting his claim, the points at issue and the relief or remedy sought, and the respondent shall state his defence in respect of these particulars, unless the parties have otherwise agreed as to the required elements of those statements. (2) The parties may submit with their statements all documents they consider to be relevant or may add a reference to the documents or other evidence they will submit. (2-A) The respondent, in support of his case, may a....
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....ontinue till the disposal of the said application: Provided also that the arbitrator shall be given an opportunity of being heard before the fees is reduced. (5) The extension of period referred to in sub-section (4) may be on the application of any of the parties and may be granted only for sufficient cause and on such terms and conditions as may be imposed by the court. (6) While extending the period referred to in sub-section (4), it shall be open to the court to substitute one or all of the arbitrators and if one or all of the arbitrators are substituted, the arbitral proceedings shall continue from the stage already reached and on the basis of the evidence and material already on record, and the arbitrator(s) appointed under this section shall be deemed to have received the said evidence and material. (7) In the event of arbitrator(s) being appointed under this section, the arbitral tribunal thus reconstituted shall be deemed to be in continuation of the previously appointed arbitral tribunal. (8) It shall be open to the court to impose actual or exemplary costs upon any of the parties under this section. (9) An application....
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.... stage, the petitioner approached this Court in W.P. No. 10091/2023 which was disposed of by order dated 11.05.2023 and relevant paragraph 5 reads as follows: "5. A perusal of the impugned order passed by the Arbitral Tribunal makes it clear that there is no adverse order passed against the petitioner in so far as their right to lead evidence and participate in the proceedings is concerned. However, having regard to the fact that the matter has been posted for recording the evidence, in the peculiar facts and circumstances of the instant case, we deem it just and proper to dispose of this petition by reserving liberty in favour of the petitioner to file their surrejoinder on the next date of hearing, i.e. on 20-5-2023, without seeking any extension in this regard." (e) Learned Single Judge of this Court reserved liberty to the petitioner to file surrejoinder on the next date of hearing i.e., on 20.05.2023 and accordingly, the petitioner filed its surrejoinder on the said date. The contention of the petitioner before the learned Single Judge in the above stated writ petition was that the petitioner intended to complete the proceedings by filing rejoinder. However, ....