Facts
The arbitration was initiated following a High Court order dated January 7, 2022, appointing a Sole Arbitrator under the Arbitration Centre (Domestic and International), High Court of Gujarat Rules, 2021
Source reference: para. 2.1Pleadings were completed on June 20, 2022, and after extensive evidence involving 19 witnesses, the parties consensually extended the mandate by six months until December 20, 2023
Source reference: para. 2.2–2.3Subsequent extensions were granted by the High Court under Rule 34.6 of the internal Rules, extending the mandate to June 20, 2025
Source reference: para. 2.4–2.7The petitioners approached the High Court for a further six-month extension to allow the Arbitrator to pronounce the award
Source reference: para. 2.8The respondents raised a preliminary objection regarding the High Court's jurisdiction, citing recent Supreme Court precedent
Source reference: para. 4Issues
1. Whether jurisdiction to extend an arbitral mandate under Section 29A(4) is determined by the Supreme Court’s interpretation of "Court" or by the parties' chosen institutional rules (Rule 34.6)
Source reference: para. 8(i)2. Whether the principle of party autonomy allows parties to confer jurisdiction upon the High Court for mandate extensions via institutional rules, notwithstanding the statutory scheme of Section 29A
Source reference: para. 8(ii)3. Whether Rule 34.6 of the Gujarat High Court Arbitration Rules can prevail over the jurisdictional framework of the Arbitration and Conciliation Act, 1996
Source reference: para. 8(iii)Law Applied
Section 29A of the Arbitration and Conciliation Act, 1996, which mandates that for domestic arbitrations, awards must be made within 12 months, with a maximum six-month consensual extension
Source reference: para. 10Definition of "Court" under Section 2(1)(e), which refers to the Principal Civil Court of original jurisdiction or a High Court exercising ordinary original civil jurisdiction
Source reference: para. 22The precedent in Jagdeep Chowgule v. Sheela Chowgule [2026 INSC 92], which established that only the "Court" competent to hear a Section 34 challenge has the power to extend a mandate under Section 29A, regardless of who appointed the arbitrator
Source reference: para. 11Order XLVII of the CPC regarding the limits of reviewing a judgment based on a subsequent change in law
Source reference: para. 17Reasoning
The Court reasoned that Section 29A is a mandatory statutory mechanism that balances party autonomy with judicial oversight; while parties can grant a one-time six-month extension, any further extension is purely a matter of judicial supervision
Source reference: para. 10.1, 12.4Although Rule 34.6 of the Arbitration Centre Rules suggests the High Court has jurisdiction, this rule was framed before the Supreme Court authoritatively settled the definition of "Court" in the context of Section 29A
Source reference: para. 12.1The Court held that subordinate legislation and institutional rules cannot override or supplant the parent statute as interpreted by the Supreme Court
Source reference: para. 12.3, 12.6Regarding party autonomy, the Court clarified that such autonomy is limited to areas where the statute is permissive; parties cannot, by agreement, "choose" a court for extension of mandate that the law does not recognize, as jurisdiction is conferred by law, not consent
Source reference: para. 12.5Holding
The Court upheld the preliminary objection, holding that according to Jagdeep Chowgule, the High Court lacks jurisdiction to entertain the extension petition as it is not the "Court" defined under Section 2(1)(e) for this dispute
The petitions were dismissed as not maintainable, with liberty for the petitioners to approach the competent Commercial/Civil Court
Source reference: para. 15The Review Application (MCA No. 773 of 2026) was rejected because a subsequent change in law by a superior court is not a valid ground for review under Order XLVII CPC
Source reference: para. 17The Court directed the Registry to place the judgment before the Arbitration Committee to amend Rule 34.6 to bring it into conformity with Supreme Court law
Source reference: para. 18Original Court PDF
ABHISHEK SURESH MEHTAvsM/S PARTH DEVELOPERS
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