In Brief
This case concerns a contractual dispute between an electrical manufacturing company and Power Grid Corporation arising from a 400 KV transmission line contract. After the Engineer failed to decide the disputes within the contractual timeframe, the appellant invoked arbitration. Three arbitrators were properly appointed, but respondent No. 1 refused to participate in the proceedings, seeking instead to challenge the tribunal's constitution. The arbitrators proceeded ex parte and delivered an award of Rs. 72,69,096 within the statutory four-month period. The High Court Division Bench set aside the award, finding the tribunal acted in undue haste. The Supreme Court reversed, holding that while the power to enlarge the statutory period rests with the Court, the tribunal was justified in proceeding within the statutory timeframe when respondent refused consent for extension. The arbitration was validly invoked, properly constituted, and the tribunal correctly fulfilled its legal obligations."
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