Time Limits for the Award

In one line

Section 29A, inserted in 2015 and substituted in part in 2019, sets a twelve-month period for a domestic award running from the completion of pleadings, allows a six-month extension by consent and further extension only by the Court, and terminates the arbitrator's mandate if the time runs out.

Section 29A(1): the period

The award IN MATTERS OTHER THAN INTERNATIONAL COMMERCIAL ARBITRATION shall be made within TWELVE MONTHS FROM THE DATE OF COMPLETION OF PLEADINGS UNDER SECTION 23(4).

Proviso: the award in an INTERNATIONAL COMMERCIAL ARBITRATION MAY BE MADE AS EXPEDITIOUSLY AS POSSIBLE, and AN ENDEAVOUR MAY BE MADE to dispose of the matter within twelve months of the completion of pleadings.

The 2019 substitution made two changes and both are examinable.

It moved the starting point from the date the tribunal entered upon the reference to the date of completion of pleadings under section 23(4), which in turn requires pleadings to be completed within six months of the arbitrators' written notice of appointment. So the outer limit for a domestic award is effectively eighteen months from appointment.

And it took INTERNATIONAL COMMERCIAL ARBITRATION out of the mandatory period altogether, leaving only an exhortation, because a hard deadline on a cross-border reference was driving foreign parties to seat their arbitrations elsewhere.

Section 29A(2): the incentive

IF THE AWARD IS MADE WITHIN SIX MONTHS from the date the tribunal ENTERS UPON THE REFERENCE, the tribunal SHALL BE ENTITLED TO RECEIVE SUCH AMOUNT OF ADDITIONAL FEES AS THE PARTIES MAY AGREE.

A bonus for speed, and it is the only provision of its kind in the Act.

Section 29A(3) and (4): extension

29A(3): the parties MAY, BY CONSENT, EXTEND the period for a FURTHER PERIOD NOT EXCEEDING SIX MONTHS.

29A(4): if the award is not made within the period in 29A(1) or the extended period under 29A(3), THE MANDATE OF THE ARBITRATOR SHALL TERMINATE UNLESS THE COURT HAS, EITHER PRIOR TO OR AFTER THE EXPIRY OF THE PERIOD SO SPECIFIED, EXTENDED THE PERIOD.

First proviso: while extending, if the Court finds the proceedings have been DELAYED FOR REASONS ATTRIBUTABLE TO THE ARBITRAL TRIBUNAL, it MAY ORDER A REDUCTION OF FEES BY NOT EXCEEDING FIVE PER CENT FOR EACH MONTH OF SUCH DELAY.

Second proviso, inserted in 2019: where an application under 29A(5) is PENDING, THE MANDATE OF THE ARBITRATOR SHALL CONTINUE TILL THE DISPOSAL OF THAT APPLICATION.

Third proviso: the arbitrator SHALL BE GIVEN AN OPPORTUNITY OF BEING HEARD BEFORE THE FEES IS REDUCED.

The words "either prior to or after the expiry" are important, because they mean an application made after the period has run is not too late; the second proviso then keeps the mandate alive while it is heard.