Extension of arbitral mandate under Section 29A requires judicial assessment of proceeding progress and sufficient cause.

The parties entered into a Collaboration Agreement on 11.06.2013

Following disputes, a Sole Arbitrator was appointed by the Court on 25.03.2021

The mandate of the Arbitrator was previously extended twice, with the last extension of nine months expiring on 05.02.2026

The Petitioner filed the present petition under Section 29-A of the Arbitration and Conciliation Act, 1996, seeking a third extension of six months to complete pending cross-examinations and final arguments

The Respondent expressed no objection to the requested extension

Whether there exists sufficient cause to grant a third extension of the mandate of the Arbitral Tribunal under Section 29-A of the Arbitration and Conciliation Act, 1996

The Court applied Section 29-A of the Arbitration and Conciliation Act, 1996, which stipulates the time limits for arbitral awards and empowers the Court to extend the mandate of an arbitrator upon the expiry of the statutory period for "sufficient cause" and on such terms as it deems fit

Section 29-A does not permit routine grants of extension but requires a careful assessment of the progress of the proceedings in light of the specific facts of each case

The Court observed that while Section 29-A is intended to ensure timely disposal, extensions are not a matter of routine and must be based on a factual assessment of the arbitration's progress

In this instance, the Court noted that the proceedings had reached a critical stage involving the completion of cross-examination and hearing of final arguments

The Court placed significant weight on the fact that both parties were ad idem (in agreement) regarding the necessity of the extension

Applying the "sufficient cause" standard under Section 29-A(5), the Court determined that the current stage of the proceedings and the mutual consent of the parties justified a further six-month extension to ensure the conclusion of the arbitral process

The Court ordered the extension of the Sole Arbitrator's mandate by a period of six months, effective until 05.08.2026

The Court regularized the period between the expiry of the previous mandate (05.02.2026) and the date of the order (16.03.2026)

The petition was disposed of accordingly