What is Section 29A of Arbitration and Conciliation Act

Section 29A lays down time limits for making an award by the arbitral tribunal. In matters other than international commercial arbitration, the award shall be made by the tribunal within 12 months from the date of completion of pleadings. Parties can consent to extend this period by a maximum of 6 months.

If the award is not made within this period, the mandate of the arbitrators shall terminate unless the court extends it. While extending the period, if the court finds that the delay was attributable to the tribunal, it may order a reduction of the arbitrators’ fee by up to 5% for each month of delay. Extension by the court can be sought by any of the parties through an application citing sufficient cause.

While extending the period, the court can substitute one or all the arbitrators and proceedings shall continue from the stage already reached.

The court shall dispose of the application for an extension within 60 days.

In international commercial arbitrations, no strict time frame has been stipulated, although the endeavour is to dispose of the matter within 12 months from the completion of pleadings.

If the award is made in 6 months from the date of reference, the tribunal shall be entitled to an additional fee if parties agree.

Under this Section, it is open for the court to impose actual or exemplary costs upon any of the parties.

The text of the Section 29A can be found below:

“29A.Time limit for arbitral award.- (1) 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 pleadings under sub-section (4) of section 23:

Provided that the award in the matter of international commercial arbitration may be made as expeditiously as possible and endeavor may be made to dispose of the matter within a period of twelve months from the date of completion of pleadings under sub-section (4) of section 23.

(2) If the award is made within a period of six months from the date the arbitral tribunal enters upon the reference, the arbitral tribunal shall be entitled to receive such amount of additional fees as the parties may agree.

(3) The parties may, by consent, extend the period specified in sub-section (1) for making award for a further period not exceeding six months.

(4) If the award is not made within the period specified in sub-section (1) or the extended period specified under sub-section (3), the mandate of the arbitrator(s) shall terminate unless the Court has, either prior to or after the expiry of the period so specified, extended the period:

Provided that while extending the period under this sub-section, if the Court finds that the proceedings have been delayed for the reasons attributable to the arbitral tribunal, then, it may order reduction of fees of arbitrator(s) by not exceeding five per cent. for each month of such delay.

Provided further that where an application under sub-section (5) is pending, the mandate of the arbitrator shall continue 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 filed under sub-section (5) shall be disposed of by the Court as expeditiously as possible and endeavour shall be made to dispose of the matter within a period of sixty days from the date of service of notice on the opposite party.”