Report No. 76
11.5. First Schedule, paragraph 3.-
Paragraph 3 provides that the arbitrators shall make their award within four months after "entering on the reference" or after having been called upon to act by a notice in writing from any party to the arbitration agreement, or within such extended time as the court may allow. There are thus, three methods of determining the period within which the award must be made. First is the primary period of four months, counted from "Entering on the reference"; the second is the period of four months, but counted from the date on which the arbitrators are called upon to act by a written notice of either party and the third is the extended time allowed by the court.
The extended time may be allowed by the court before or after the expiry of the original time.1 This paragraph is mandatory2 and imposes a duty on the arbitrators to make their award, within one or the other of the three alternative periods. Consent of any party to the arbitrator proceeding with the reference, without an order of extension being obtained from the court, cannot thus have the effect of giving the arbitrator such jurisdiction.3
1. Section 28.
2. Harishankar Lal v. Shambhu Lal, (1962) 2 SCR 720: AIR 1962 SC 78 (80), para.
3. Sawarn Singh v. Municipal Committee, Pathankot, AIR 1963 Punj 427 (429).