An application for extension under Section 29A(4) of Arbitration and Conciliation Act, 1996 can be filed either before or after the termination of the Tribunal’s mandate upon expiry of the statutory and extendable period | ‘Sufficient cause’ should be interpreted in the context of facilitating effective dispute resolution – Ajay Protech Pvt. Ltd. Vs. General Manager and Anr. – Supreme Court
The Hon’ble Supreme Court held that:
(i) Even if Section 29A(4) of the Arbitration Act provides for the termination of the Tribunal’s mandate on the expiry of the period, it recognises party autonomy to move an application before the Court for further extension. Thus, the termination of mandate under the provision is only conditional on the non-filing of an extension application, and cannot be taken to mean that the mandate cannot be extended once it expires.
(ii) The meaning of ‘sufficient cause’ for extending the time to make an award must take colour from the underlying purpose of the arbitration process. Therefore, ‘sufficient cause’ should be interpreted in the context of facilitating effective dispute resolution.