Section 29A of the Arbitration and Conciliation Act, 1996: Time Limit for Arbitral Award
Section 29A of the Arbitration and Conciliation Act, 1996 prescribes the statutory framework for making an arbitral award within a specified period, extending that period by consent of the parties, and seeking further extension from the Court. It also regulates continuation or termination of the arbitrator's mandate, substitution of arbitrators, reduction of fees in cases of tribunal-attributable delay, and costs.
What is Section 29A of the Arbitration and Conciliation Act, 1996?
Section 29A was introduced to promote timely completion of arbitration. For matters other than international commercial arbitration, the award is ordinarily required to be made within twelve months from the date of completion of pleadings under Section 23(4).
Text of Section 29A - Time Limit for Arbitral Award
29A. Time limit for arbitral award.
(1) The award in matters other than international commercial arbitration shall be made by the arbitral tribunal within a period of twelve months from the date of completion of pleadings under sub-section (4) of section 23:
Provided that the award in the matter of international commercial arbitration may be made as expeditiously as possible and endeavour may be made to dispose of the matter within a period of twelve months from the date of completion of pleadings under sub-section (4) of section 23.
(2) If the award is made within a period of six months from the date the arbitral tribunal enters upon the reference, the arbitral tribunal shall be entitled to receive such amount of additional fees as the parties may agree.
(3) The parties may, by consent, extend the period specified in sub-section (1) for making award for a further period not exceeding six months.
(4) If the award is not made within the period specified in sub-section (1) or the extended period specified under sub-section (3), the mandate of the arbitrator or arbitrators shall terminate unless the Court has, either prior to or after the expiry of the period so specified, extended the period:
Provided that while extending the period under this sub-section, if the Court finds that the proceedings have been delayed for the reasons attributable to the arbitral tribunal, then, it may order reduction of fees of arbitrator or arbitrators by not exceeding five per cent for each month of such delay.
Provided further that where an application under sub-section (5) is pending, the mandate of the arbitrator shall continue till the disposal of the said application:
Provided also that the arbitrator shall be given an opportunity of being heard before the fees is reduced.
(5) The extension of period referred to in sub-section (4) may be on the application of any of the parties and may be granted only for sufficient cause and on such terms and conditions as may be imposed by the Court.
(6) While extending the period referred to in sub-section (4), it shall be open to the Court to substitute one or all of the arbitrators and if one or all of the arbitrators are substituted, the arbitral proceedings shall continue from the stage already reached and on the basis of the evidence and material already on record, and the arbitrator or arbitrators appointed under this section shall be deemed to have received the said evidence and material.
(7) In the event of arbitrator or arbitrators being appointed under this section, the arbitral tribunal thus reconstituted shall be deemed to be in continuation of the previously appointed arbitral tribunal.
(8) It shall be open to the Court to impose actual or exemplary costs upon any of the parties under this section.
(9) An application filed under sub-section (5) shall be disposed of by the Court as expeditiously as possible and endeavour shall be made to dispose of the matter within a period of sixty days from the date of service of notice on the opposite party.
Official legislation portal: India Code
Section 29A Timeline at a Glance
| Stage | General Rule |
|---|---|
| Initial period | 12 months from completion of pleadings under Section 23(4), for matters other than international commercial arbitration. |
| International commercial arbitration | The award should be made as expeditiously as possible, with an endeavour to dispose of the matter within 12 months from completion of pleadings. |
| Extension by consent | Up to a further 6 months under Section 29A(3). |
| Further extension | Requires an order of the Court under Sections 29A(4) and 29A(5). |
| Pending extension application | The mandate continues until disposal of the application. |
Section 29A(1): Twelve-Month Period
Following the 2019 amendment, the twelve-month period for matters other than international commercial arbitration is counted from the date of completion of pleadings under Section 23(4), rather than from the date on which the tribunal entered upon the reference.
International commercial arbitration is treated differently. The statute uses an expeditious-disposal standard and states that an endeavour may be made to conclude the matter within twelve months from completion of pleadings.
Section 29A(3): Six-Month Extension by Consent
The parties may jointly extend the period for making the award by a further period not exceeding six months. This extension does not require a court order, but it must be based on consent of the parties.
Section 29A(4) and 29A(5): Extension by the Court
If the award is not made within the statutory period or the consensually extended period, the arbitrator's mandate is subject to Section 29A(4). The Court may extend the period either before or after expiry of the applicable period.
Under Section 29A(5), an application for extension may be made by any party. The Court may grant an extension only for sufficient cause and may impose appropriate terms and conditions.
Latest Supreme Court Position on Section 29A
The Supreme Court has clarified that an application seeking extension of the arbitral mandate is not barred merely because it is filed after expiry of the statutory period. In Rohan Builders (India) Pvt. Ltd. v. Berger Paints India Ltd., the Court recognised that Section 29A permits extension even after expiry of the prescribed period.
In C. Velusamy v. K Indhera, 2026 INSC 112, the Supreme Court went further and held that the Court's jurisdiction under Section 29A is not lost merely because an award has meanwhile been rendered after expiry of the mandate. The Court may still entertain the application and pass appropriate orders under Section 29A in the circumstances of the case.
Supreme Court judgment: C. Velusamy v. K Indhera, 2026 INSC 112
Reduction of Arbitrator's Fees for Delay
If the Court finds that delay is attributable to the arbitral tribunal, it may reduce the arbitrator's fees by not more than five per cent for each month of delay. Before such reduction is ordered, the arbitrator must be given an opportunity of being heard.
Continuation of Mandate While Application is Pending
The second proviso to Section 29A(4) provides that when an application under Section 29A(5) is pending, the arbitrator's mandate continues until that application is disposed of.
Power to Substitute Arbitrators
Section 29A(6) permits the Court, while extending time, to substitute one or all of the arbitrators. If substitution occurs, the arbitration does not restart from the beginning. It continues from the stage already reached on the basis of the evidence and material already on record.
Reconstituted Tribunal
Under Section 29A(7), a tribunal reconstituted after substitution is deemed to be a continuation of the previously appointed arbitral tribunal.
Costs under Section 29A(8)
The Court may impose actual or exemplary costs on any party while exercising powers under Section 29A.
Sixty-Day Endeavour for Court Application
Section 29A(9) requires an application for extension to be dealt with as expeditiously as possible. The statute states that an endeavour should be made to dispose of the application within sixty days from service of notice on the opposite party.
Jammu and Kashmir and Ladakh Adaptation
The uploaded statutory text records a special adaptation for the Union Territories of Jammu and Kashmir and Ladakh. Under that adaptation, Section 29A(1) provides that the award shall be made within twelve months from the date the arbitral tribunal enters upon the reference.
For that purpose, the tribunal is deemed to have entered upon the reference on the date on which the arbitrator, or all the arbitrators, receive written notice of their appointment. The adaptation also omits the second and third provisos to Section 29A(4).
Key Points to Remember
- Section 29A imposes a statutory framework for timely arbitral awards.
- For domestic arbitration, the 12-month period ordinarily runs from completion of pleadings under Section 23(4).
- The parties may consent to an additional period of up to 6 months.
- Further extension requires the Court's intervention.
- The Court may extend the mandate even after expiry of the statutory period.
- The latest Supreme Court position permits the Court to consider extension even where an award was rendered after expiry of the mandate.
- The Court may substitute arbitrators, reduce fees for tribunal-attributable delay, and impose costs.
- A pending Section 29A(5) application keeps the mandate alive until disposal.
Updated with the current statutory text and Supreme Court position available as of September 2026.