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2000 DIGILAW 1768 (SC)

NATIONAL RESEARCH DEVELOPMENT corporation v. INDUSTRIAL CARBON

2000-10-30

M.JAGANNADHA RAO, SHIVARAJ V.PATIL

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( 1 ) SPECIAL leave granted. ( 2 ) THIS appeal arises out of an order passed by the High Court of Delhi dated 18-11-1999 refusing to grant further extension under Section 28 of the arbitration Act, 1940. The arbitrator entered into a reference on 18-7-1994 and the parties obtained an order from the Court on 4-1-1995 granting extension of time for completion of the arbitration proceedings by four months. The said period expired on 4-5-1995. Thereafter, the matter was being taken up by the arbitrator and the parties had taken part in the arbitration proceedings for a period of two years. But ultimately the arbitrator passed an order on 26-3-1997 that inasmuch as there was no extension of time beyond 4-5-1995, he would not proceed with the arbitration unless further extension of time beyond 4-5-1995 was obtained. Thereafter the appellant filed an application under Section 28 of the Arbitration Act, 1940 on 13-5-1998. The High Court rejected the same under the impugned order dated 18-11-1999 on the ground that the appellant was not taking any interest in the matter. ( 3 ) IF we read the proceedings before the arbitrator it is clear that both parties were seeking adjournments. The respondents had taken time on a number of occasions to file their counter. Thereafter the appellant took time to file replication and also for filing affidavit evidence. In fact the matter was dismissed for default twice by the arbitrator and was restored. The arbitrator appears to have been very patient in spite of the number of adjournments taken by both sides. In the circumstances and inasmuch as proceedings went on before the arbitrator beyond 4-5-1995 for nearly two years, we are not inclined to reject the application for extension of time. We, therefore, set aside the order of the High Court and grant extension of time but we limit the time by four months from 20-11-2000, on which day, the parties will appear before the arbitrator. No further time will be made available. It will be for the parties to cooperate and help the arbitrator to pass an order on the merits at an early date. In case any of the parties do not cooperate with the arbitrator it will be open to the arbitrator to take such steps as he may deem fit in accordance with law. It will be for the parties to cooperate and help the arbitrator to pass an order on the merits at an early date. In case any of the parties do not cooperate with the arbitrator it will be open to the arbitrator to take such steps as he may deem fit in accordance with law. ( 4 ) FURTHER in view of the delay by the appellant in moving the High Court we grant extension of time as stated above on condition of the appellant paying to the respondents a sum of Rs 10,000 before 20-11-2000. The copy of this order will be sent to Respondent 5 arbitrator. ( 5 ) NO further notice need be issued by the arbitrator. The parties will appear before the arbitrator on 20-11-2000. ( 6 ) THE appeal is disposed of with costs.