Supreme Court Holds That A Party Cannot Challenge An Arbitral Award On The Ground That The Arbitral Mandate Has Expired When The Party Itself Has Accepted Extension Of Arbitral Mandate

The Supreme Court of India, through its judgement dated 26.05.2026 in the matter of Gujrat Water Supply and Sewerage Board v Saryu Plastics Private Limited,¹  held that a party cannot challenge an arbitral award on the ground that the arbitral mandate has expired, when the party itself has accepted extension of arbitral mandate.

The Court observed that Section 29A of the Arbitration and Conciliation Act, 1996 (“A&C Act”) does not apply in cases wherein the parties to the arbitration agreement have participated in the arbitral proceedings even after the mandate was extended. Further, the Court held that as the Board had not objected to the continuation of the arbitral proceeding, it had tacitly agreed to the extension of the mandate through its conduct and that the principles of estoppel applied against the Board. In addition to this, the Court also observed that party autonomy, coupled with minimal intervention of judicial authorities, has been the guiding principle for the A&C Act and due to this reason, there is no statutory timeline for delivering the Arbitral Awards and prescribing consequences of not delivering them on time.

Footnote

^{1 1 Civil Appeal Nos. 769-770 of 2026.}

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