29 April 2024 Arbitration Law >> Business & Commercial Law   |   Business Laws >> Business & Commercial Law  

Delhi High Court has stepped in to expedite a dispute between the National Highways Authority of India (NHAI) and M/s KCC Buildcon Pvt. Ltd. (KCC) by extending the mandate of the existing arbitral tribunal. This comes after delays in the arbitration process and a challenge by KCC to the tribunal's legitimacy.

The dispute stems from an Engineering, Procurement and Construction (EPC) agreement signed by both parties in December 2016. An arbitral tribunal was formed in December 2021 to resolve the disagreement, with a six-month extension agreed upon later.

However, the arbitration process became bogged down by delays. KCC amended their claims and submitted a massive affidavit with over 6,000 pages of documents, prompting NHAI to contest their inclusion.

Further complicating matters, KCC argued that the tribunal's mandate had expired in February 2024 and attempted to appoint a new arbitrator. They also raised accusations of bias and lack of impartiality against the existing panel.

The court, however, dismissed these claims. They found KCC's actions, particularly the late amendments and voluminous documents, to be the primary cause of the delays. The court deemed the accusations of bias to be unfounded and a strategy to stall the proceedings.

In a decisive move, the court extended the mandate of the current tribunal until December 31, 2024. This ensures continuity in the arbitration process and avoids the need to start afresh. Additionally, the court will send a copy of the order to the court handling KCC's separate petition for a new tribunal (ARB.P. 526/2024), likely impacting their case significantly.

This decision prioritizes a swift resolution to the dispute. With the existing tribunal back on track and a clear timeline established, both NHAI and KCC can expect a more expeditious outcome.

  Arbitration and Conciliation Act, 1996