Calcutta HC rules only it can extend mandate of arbitrators appointed under Section 11 of Arbitration Act.
The Calcutta High Court clarifies jurisdictional authority under the Arbitration and Conciliation Act, reinforcing the High Court’s exclusive power.
The Calcutta High Court has ruled that when an arbitrator is appointed by the High Court under Section 11 of the Arbitration and Conciliation Act, 1996, any application seeking extension of the arbitrator’s mandate under Section 29A(4) must also be made before the High Court, and not before the Principal Civil Court or Commercial Court having local jurisdiction.
Justice Shekhar B. Saraf, who delivered the judgment, stated that the power to extend an arbitrator’s mandate is “co-extensive” with the power to appoint the arbitrator in the first place. This interpretation, the Court held, is essential to maintain consistency and avoid conflicting orders from multiple forums.
The Court reasoned that since the appointment of the arbitrator under Section 11 is a judicial function performed by the High Court, it follows logically that the extension of such an arbitrator’s mandate must also lie within the High Court’s domain. This reinforces a hierarchical integrity within arbitration proceedings and ensures that parties do not forum-shop or inadvertently approach an incorrect authority.
The decision is likely to have a significant impact on arbitration practices across jurisdictions, especially in complex commercial disputes where timeliness and judicial consistency are paramount.
This ruling is expected to bring greater clarity for litigants and legal practitioners alike, particularly in matters involving procedural extensions of arbitrator timelines. It underscores the High Court’s central role in overseeing arbitrations it has itself constituted.
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