GAIL India Limited vs Taurant Projects Limited

The petition filed by GAIL India Limited being O.M.P.(MISC.)(COMM.) 354/2026 under Sections 29A(4) read with Section 29A(5) of the Arbitration and Conciliation Act, 1996^{11.“Act” hereinafter}, seeks extension of the mandate of the learned Sole Arbitrator for completion of the arbitral proceedings and rendering of the award.

The disputes between the parties arise out of contractual arrangements concerning the execution of underground pipeline works in Ranchi.

The arbitral proceedings commenced in April 2024 before Hon’ble Mr. Justice Hemant Gupta (Retd.), Former Judge of the Hon’ble Supreme Court of India, who was appointed as the learned Sole Arbitrator by this Court.

Learned Counsel for GAIL India Limited submits that the arbitral proceedings have progressed to the stage of recording evidence and cross-examination. However, the proceedings could not be completed within the prescribed period and further time is required for completion of the remaining evidence, hearing final arguments and rendering the arbitral award. Accordingly, an extension of twelve months is sought.

Per contra, learned Counsel appearing on behalf of the Taurant Projects Limited opposes the extension and submits that the arbitral proceedings have been affected by procedural irregularities, including the alleged denial of an effective opportunity to lead evidence and cross-examination of witnesses, refusal to take additional documents on record and failure to frame issues.

It is further contended that the disputes arising from the subsequent work arrangements are not covered by the arbitration clause contained in the original contractual arrangement.

On the aforesaid grounds, Taurant Projects Limited has also instituted a petition being O.M.P. (T) (COMM.) 109/2026 under Sections 14(1)(a) read with Section 14(2) of the Act, seeking termination of the mandate of the learned Sole Arbitrator or, in the alternative, substitution of the arbitrator.

This Court has considered the rival submissions and perused the material placed on record.

Having regard to the stage of the arbitral proceedings, the nature of the disputes and the requirement of bringing the arbitration to its logical conclusion, this Court is satisfied that sufficient cause has been made out for extension of the mandate of the learned Sole Arbitrator.

The allegations raised by Taurant Projects Ltd, by themselves, do not warrant termination of the mandate of the learned Sole Arbitrator in the facts and circumstances of the present case.

Any procedural objections that remain open may be raised before the learned Arbitral Tribunal in accordance with law. The objections concerning the existence, scope and applicability of the arbitration agreement shall remain open for consideration by the arbitrator without prejudice to the rights and contentions of either party.

In view of the foregoing, the petition filed by GAIL India Limited, i.e. O.M.P.(MISC.)(COMM.) 354/2026 under Section 29A of the Act is allowed. The mandate of the learned Sole Arbitrator, Hon’ble Mr. Justice Hemant Gupta (Retd.) is extended by a period of twelve months for completion of the arbitral proceedings and rendering of the award.

This Court is not inclined to interfere with the petition filed under Section 14. Hence, the petition filed by Taurant Projects Limited, i.e., O.M.P. (T) (COMM.) 109/2026 seeking termination of the mandate of the learned Sole Arbitrator is disposed of, with the direction to the parties to raise all disputes, objections, and other pleas available to them in accordance with law before the learned Sole Arbitrator.

It is clarified that the observations made herein are confined to the disposal of the present petitions and shall not prejudice the adjudication of the merits of the dispute.

The parties shall extend full cooperation to the learned Sole Arbitrator to ensure expeditious completion of the proceedings within the extended period.

Both petitions stand disposed of in the above terms. Pending application(s), if any, also stand disposed of.