GST IT TDS Tax Update
February 12, 2025 at 02:55 AM
*ROHAN BUILDERS (INDIA) PRIVATE LIMITED VERSUS BERGER PAINTS INDIA LIMITED, SLP(C) No. 023320 - / 2023*
BENCH: JUSTICES SANJIV KHANNA AND R. MAHADEVAN
COURT: SUPREME COURT
In an important ruling, the Supreme Court held that an application for extending the time for passing of an arbitral award can be filed even after the expiry of the twelve-month or the extended six-month period.
As per the Court, the termination of the arbitral mandate is conditional upon the non-filing of an extension application and cannot be treated as termination stricto sensu.
“The word “terminate” in Section 29A (4) makes the arbitral tribunal functus officio, but not in absolute terms. The true purport of the word “terminate” must be understood in light of the syntax of the provision. The absence of a full stop after the word “terminate” is noteworthy. The word “terminate” is followed by the connecting word “unless”, which qualifies the first part with the subsequent limb of the section, i.e. “unless the court has, either prior to or after the expiry of the period so specified, extended the period.” The expression “prior to or after the expiry of the period so specified” has to be understood with reference to the power of the court to grant an extension of time.”