Supreme Court Clarifies Extension of Arbitral Tribunal Tenure

The Supreme Court ruled that the tenure of an arbitral tribunal can be extended even after its term has expired. This decision came amidst conflicting judgments from various high courts, emphasizing the need to give laws 'meaningful life.' The ruling aims to avoid impractical legal scenarios.

The Supreme Court on Thursday established that the fixed tenure of an arbitral tribunal can be extended even after its expiration, emphasizing the need to provide a 'meaningful life' to laws to avoid impractical consequences.

The decision resolves conflicting judgments from multiple high courts, including the Calcutta, Delhi, Jammu and Kashmir, Bombay, and Madras high courts. Previously, the Calcutta High Court ruled that an application for an extension was only valid if filed before the original tenure expired, while other courts allowed applications even after the term ended.

Justices Sanjiv Khanna and R Mahadevan clarified that applications for extending the arbitral tribunal's tenure can be entertained after their terms expire. The court emphasized that statutory interpretations should avoid unreasonable results. The ruling emerged from a series of pleas, including one from Rohan Builders Private Ltd.