C. Velusamy v. K. Indhera

 An application under s. 29A(5) of the Arbitration and Conciliation Act, 1996 is maintainable even after expiry of the statutory period and even after an award is rendered, though such award is unenforceable unless the mandate is extended.

 

Background

The parties were governed by three agreements to sell. A sole arbitrator was appointed by the High Court on 19.04.2022. Pleadings were completed on 20.08.2022, triggering the twelve-month period under s. 29A(1), Arbitration and Conciliation Act, 1996 (“1996 Act”), which was extended by mutual consent under s. 29A(3) till 20.02.2024. The arbitrator rendered the award on 11.05.2024, after expiry of mandate. The respondent challenged the award under s. 34, while the appellant sought extension of mandate under s. 29A(5).

 

Issues Framed

Whether a Court can entertain an application under s. 29A(5), 1996 Act to extend the mandate of the arbitrator even after an award is rendered, though after expiry of the statutory eighteen-month period.

 

Court’s Reasoning

1. Statutory Scheme of s. 29A
The Court analysed s. 29A(1)–(9), 1996 Act, holding that termination of mandate under s. 29A(4) is conditional and transitory, being expressly subject to the Court’s power to extend the period either before or after expiry.
2. Effect of Award Passed After Expiry of Mandate
An award rendered after expiry of mandate does not partake the character of a decree and is unenforceable under s. 36, 1996 Act. However, such unilateral act of the arbitrator does not denude the Court of jurisdiction under s. 29A.
3. Interpretation of “If the award is not made”
The phrase in s. 29A(4) is contextual and enables extension of time; it does not bar post-award consideration of extension. The provision is facilitative, not abortive of arbitral proceedings.
4. Legislative Intent & Law Commission Reports
Relying on the 176th Law Commission Report, the Court held that Parliament intended courts to ensure continuation and conclusion of arbitration, not its failure on technical timelines.
5. Precedent
The Court approved and extended the reasoning in Rohan Builders (India) Pvt. Ltd. v. Berger Paints India Ltd., holding that courts may decide s. 29A(5) applications even when an award has been rendered meanwhile.
 

Decision 

The appeal was allowed. The High Court’s order rejecting the s. 29A application was set aside, and the application for extension of mandate was restored for fresh consideration in accordance with law.

 

Ratio

A Court has jurisdiction under s. 29A(5), Arbitration and Conciliation Act, 1996 to extend the mandate of an arbitrator even after expiry of the statutory period and even after an award is rendered, such award being unenforceable unless the mandate is extended.

Case Details

Citation: 2026 INSC 112
Decided on: 03 February 2026
Case Title: C. Velusamy v. K. Indhera
Court: Supreme Court of India
Bench: Pamidighantam Sri Narasimha, J.; Atul S. Chandurkar, J.


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