2020 (4) TMI 875 - HC - Indian Laws

Arbitral Award - applicability of provisions of Section 29A of the Arbitration and Conciliation Act 1996 - HELD THAT - Looking to impediments in arranging sureties because of lockdown while invoking powers under Article 226 and 227 of the Constitution of India we deem it appropriate to order that all the accused-applicants whose bail applications came to be allowed on or after 15th March 2020 but have not been released due to non-availability of sureties as a consequence to lockdown may be released on executing personal bond as ordered by the Court or to the satisfaction of the jail authorities where such accused is imprisoned provided the accused-applicants undertakes to furnish required sureties within a period of one month from the date of his/her actual release. The order be published in the official website of this Court.

Summary

Issues:
1. Extension of time period for making awards in arbitral proceedings under Section 29A of the Arbitration and Conciliation Act, 1996.
2. Release of accused-applicants on bail due to non-availability of sureties amidst lockdown.

Analysis:

Issue 1: Extension of time period for making awards in arbitral proceedings under Section 29A of the Arbitration and Conciliation Act, 1996
The High Court addressed the issue of extending the time period for making awards in arbitral proceedings under Section 29A of the Arbitration and Conciliation Act, 1996. The Court acknowledged the mandatory nature of the requirement under Section 29A but considered the extraordinary circumstances arising from the COVID-19 lockdown. Consequently, the Court decided to extend the period for making awards in arbitral proceedings where the pleadings under sub-section (4) of Section 23 have been completed and the twelve-month deadline is set to expire on or after 25th March, 2020. The extension was granted until 25th May, 2020, in light of the exceptional situation caused by the lockdown.

Issue 2: Release of accused-applicants on bail due to non-availability of sureties amidst lockdown
The Court also dealt with the issue of releasing accused-applicants on bail who were granted bail orders before the lockdown but remained incarcerated due to the unavailability of sureties. Recognizing the challenges faced in arranging sureties during the lockdown period, the Court invoked its powers under Article 226 and 227 of the Constitution of India. The Court directed that all accused-applicants whose bail applications were allowed on or after 15th March, 2020, but were not released due to the lack of sureties, could be released by executing a personal bond as per the court's order or to the satisfaction of the jail authorities. However, the accused were required to provide the necessary sureties within one month from their actual release. The Court also instructed the publication of this order on the official website of the Court and dissemination to relevant authorities and stakeholders for compliance and implementation.

This judgment by the Allahabad High Court exemplifies the judiciary's proactive approach in addressing legal issues arising from the unprecedented circumstances of the COVID-19 pandemic, ensuring justice is served while considering the practical challenges faced by litigants and the legal system during such times.