Rajiv Negi vs The Chief Engineer (Sz) & Another on 9 July, 2026

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    Himachal Pradesh High Court

    Rajiv Negi vs The Chief Engineer (Sz) & Another on 9 July, 2026

    Author: Virender Singh

    Bench: Virender Singh

                                                  1                          2026:HHC:27969
    
            IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
    
                                                      Arb. Case No. :           128 of 2026
    
    
    
    
                                                                                  .
                                                      Decided on     :          09.07.2026
    
    
    
    
    
        Rajiv Negi                                                                ...Applicant
    
    
    
    
    
                                                  Versus
    
        The Chief Engineer (SZ) & Another                                     ...Respondents
    
    
    
    
                                                       of
        Coram
        The Hon'ble Mr. Justice Virender Singh, Judge.
                             rt
        Whether approved for reporting?1
    
        For the applicant                 : Mr. Sunil Mohan Goel, Senior
                                            Advocate with Mr. Abhijeet Singh
                                            Chauhan, Advocate.
    
    
        For the respondents : Mr. Mohinder Zharaick, Additional
                              Advocate General, assisted by Mr.
                              Rohit Sharma and Ms. Ranjna
    
    
    
    
                              Patial, Deputy Advocates General.
    
    
    
    
    
        Virender Singh, Judge. (Oral)
    

    Applicant has filed the present application,

    under Section 29-A (4) and (5) of the Arbitration and

    Conciliation Act, 1996 (hereinafter referred to as ‘the Act’),

    seeking indulgence of this Court to extend the time to

    conclude the arbitration proceedings in Ref. Arbitration

    Case No. 513 of 2024, titled as Rajiv Negi versus The Chief
    1
    Whether Reporters of local papers may be allowed to see the judgment? Yes.

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    2 2026:HHC:27969

    Engineer (South Zone), HPPWD, Shimla & Another,

    pending adjudication before the Justice B.S. Walia (Retd.),

    .

    Former Judge, Punjab & Haryana High Court, Sole

    Arbitrator (hereinafter referred to as the ‘Arbitrator’).

    2. Brief facts, leading to the filing of the present

    application, before this Court, may be summed up, as

    of
    under:

    2.1. The
    rt respondent-department had floated a

    tender for ‘Construction of 5/7 metre wide road from

    Kharela to Krangla 0/000 to 7/500 (SH: formation cutting

    of 5/7 metre wide road, construction so retaining

    walls/breast walls, cross drainage works, construction of

    catch water drain, essential parapets, providing and laying

    Kharanja stone soling at various RDs, and construction of

    dumping structures from Km 0/000 to 7/500), under

    NABARD RIDF-XXV, Agreement No.76 of 2020-21.

    2.2. During the extended time, for completion of the

    work, the respondents closed Agreement No.76 of 2020-21,

    by invoking clauses 3(ii), 3(iii) and 3(iv). Thereafter, the

    claimant issued legal notice requesting the respondent-

    department to appoint Arbitrator, in terms of Clause 25 of

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    3 2026:HHC:27969

    the agreement, however, no action was taken on the

    request of the petitioner. As such, petition, registered as

    .

    Arbitration Case No.513 of 2024, under Section 11(6) of

    the Arbitration and Conciliation Act, was filed before this

    Court, and vide order dated 20.09.2024, Justice B.S. Walia

    (Retd.), Former Judge, Punjab and Haryana High Court,

    of
    was appointed as sole Arbitrator to adjudicate the dispute

    between the parties.

    rt
    2.3. The proceedings were initiated by the learned

    Arbitrator, by issuing notice to the parties for 04.11.2024,

    for preliminary hearing through Video Conferencing.

    3. Since, the period of twelve months, as provided

    under Section 29-A(1) of the Act to pass the Arbitral Award

    has expired, as also the extended period of six months, as

    provided, under Section 29-A(3) of the Act, is going to

    expire on 13.07.2026, the present petition has been filed

    seeking indulgence of this Court to extend the time, for a

    further period of six months.

    4. On the basis of the above facts, a prayer has

    been made to extend the time, by six months, for

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    4 2026:HHC:27969

    completion of the arbitral proceedings, before the learned

    Arbitrator.

    .

    5. The factual position, as asserted in the

    application, has not been disputed, by the learned

    Additional Advocate General.

    6. As per the averments, made in the application,

    of
    though arguments, in the proceedings have been heard,

    however, the case is now ordered to be listed for
    rt
    clarification on 09.07.2026.

    7. From the above facts, it is crystal clear that the

    case was listed on 09.07.2026, before the learned

    Arbitrator, for clarification, however, the award could not

    be passed only on account of the fact that the statutory

    period has already elapsed.

    8. The applicant is before this Court, under

    Section 29A (4) (5) of the Act. The relevant provisions of

    Section 29A of the Act, are reproduced, as under:

    “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

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    5 2026:HHC:27969

    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.

    of
    (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.

    rt
    (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

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    6 2026:HHC:27969

    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

    of
    evidence and material.

    (7) In the event of arbitrator(s) being appointed
    under this section, the arbitral tribunal thus
    rt
    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.”

    9. The bare perusal of sub-clause (4) of Section

    29-A of the Act demonstrates that the period can be

    extended either prior to or after the expiry of the period, so

    specified. Meaning thereby, the time limit for passing the

    arbitral award can be extended by this Court, even after

    the expiry of the period, so specified, in Section 29-A (1)

    and (3) of the Act.

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    7 2026:HHC:27969

    10. The provisions of Section 29-A (4) and (5) have

    elaborately been discussed by the Hon’ble Supreme Court

    .

    in its recent decision in Rohan Builders (India) Private

    Limited versus Berger Paints India Limited, reported in

    (2025) 10 Supreme Court Cases 802. Relevant paras-19

    to 23 of the said judgment, are reproduced, as under:

    of
    “19. Rohan Builders (India) (P) Ltd. v. Berger
    Paints India Ltd.
    2023 SCC OnLine Cal 2645,
    highlights that an interpretation allowing an
    rt
    extension application post the expiry period
    would encourage rogue litigants and render the
    timeline for making the award inconsequential.

    However, it is apposite to note that under Section
    29-A(5)
    , the power of the court to extend the time
    is to be exercised only in cases where there is
    sufficient cause for such extension. Such
    extension is not granted mechanically on filing of

    the application. The judicial discretion of the
    court in terms of the enactment acts as a
    deterrent against any party abusing the process
    of law or espousing a frivolous or vexatious

    application. Further, the court can impose terms
    and conditions while granting an extension.

    Delay, even on the part of the Arbitral Tribunal,
    is not countenanced {H.P. Singh v. Northern
    Railways
    , 2023 SCC OnLine J&K 1255}. The

    first proviso to Section 29-A(4) permits a fee
    reduction of up to five per cent for each month of
    delay attributable to the Arbitral Tribunal.

    20. Lastly, Section 29-A(6) does not support the
    narrow interpretation while deciding an of the
    expression “terminate”. It states that the court
    extension application under Section 29-A(4)
    may substitute one or all the arbitrators. Section
    29-A(7)
    states that if a new arbitrator(s) is
    appointed, the reconstituted Arbitral Tribunal
    shall be deemed to be in continuation of the
    previously appointed Arbitral Tribunal. This
    obliterates the need to file a fresh application

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    8 2026:HHC:27969

    under Section 11 of the A&C Act for the
    appointment of an arbitrator. In the event of
    substitution of arbitrator(s), the arbitral
    proceedings will commence from the stage

    .

    already reached. Evidence or material already

    on record is deemed to be received by the newly
    constituted tribunal. The aforesaid deeming
    provisions underscore the legislative intent to

    effectuate efficiency and expediency in the
    arbitral process. This intent is also demonstrated
    in Sections 29-A(8) and 29-A(9). The court in
    terms of Section 29-A(8) has the power to impose

    of
    actual or exemplary costs upon the parties.
    Lastly, Section 29-A(9) stipulates that an
    application for extension under sub-section (5)
    must be disposed of expeditiously, with the
    endeavour of doing so within sixty days from the
    rt
    date of filing.

    21. As per the second proviso to Section 29-A(4),

    the mandate of the Arbitral Tribunal continues
    where an application under sub-section (5) is
    pending. However, an application for extension
    of period of the Arbitral Tribunal is to be decided

    by the court in terms of sub-section (5), and sub-
    sections (6) to (8) may be invoked. The power to
    extend time period for making of the award vests
    with the court, and not with the Arbitral

    Tribunal. Therefore, the Arbitral Tribunal may
    not pronounce the award till an application
    under d Section 29-A(5) of the A&C Act is sub

    judice before the court. In a given case, where an
    award is pronounced during the pendency of an
    application for extension of period of the Arbitral

    Tribunal, the court must still decide the
    application under sub-section (5), and may even,
    where an award has been pronounced, invoke,
    when required and justified, sub-sections (6) to
    (8), or the first and third proviso to Section 29-
    A(4) of the A&C Act.

    22. While interpreting a statute, we must strive
    to give meaningful life to an enactment or rule
    and avoid cadaveric consequences that result in
    unworkable or impracticable scenarios. 26 An
    interpretation which produces an unreasonable
    result is not to be imputed to a statute if there is

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    9 2026:HHC:27969

    some other equally possible construction which
    is acceptable, practical and pragmatic.

    23. In view of the above discussion, we hold that

    .

    an application for extension of the time period for

    passing an arbitral award under Section 29-A(4)
    read with Section 29-A(5) is maintainable even
    after the expiry of the twelve-month or the

    extended six-month period, as the case may be.
    The court while adjudicating such extension
    applications will be guided by the principle of
    sufficient cause and our observations in para 19

    of
    of the judgment.”

    11. If, the facts and circumstances of the present
    rt
    case, are seen, in the light of the decision of the Hon’ble

    Supreme Court in Rohan Builders‘ case (supra), there is

    no hesitation for this Court to hold that the award, in the

    present case, could not be passed, by the learned

    Arbitrator, on account of the fact that the mandate of the

    learned Arbitrator has already expired.

    12. As per the stand taken by the parties, the

    proceedings could not be completed, due to the

    circumstances, which are beyond the ordinary control of

    the parties. As per the order dated 29.06.2026, passed by

    the learned Arbitrator, the respondents sought time to file

    affidavit, in terms of order dated 23.03.2026. Bare reading

    of order dated 29.06.2026, makes out a case to extend the

    time to conclude the arbitral proceedings.

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    10 2026:HHC:27969

    13. Consequently, the application is allowed and

    the learned Arbitrator is directed to culminate the

    .

    proceedings by or before 31st December, 2026.

    14. The application stands disposed of, in above

    terms.

    of
    ( Virender Singh )
    Judge
    July 09, 2026( ps )
    rt

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