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Rashmi Sales Pvt Ltd & Ors. vs. Club Resorto Vacations Private Limited

Original Miscellaneous Petition (Miscellaneous, Commercial) · 2026:DHC:8029Decided 18 Sept 2026New Delhi Bench
O.M.P.(MISC.)(COMM.) 571/2026CNR: DLHC010341822026
Justice Om Prakash Shukla

Background

The petitioners had leased commercial premises in Okhla to the respondent, who stopped paying rent and other charges from February 2024, leading the petitioners to invoke arbitration. The Court-appointed sole arbitrator's mandate, earlier extended by mutual agreement for six months, expired on 10 August 2026 while the arbitration was still at the stage of final arguments after evidence from both sides had been completed.

Decision Breakdown

The Court noted that the arbitral proceedings had progressed to an advanced stage, that the respondent did not appear despite being served, and that only the conclusion of arguments and pronouncement of the award remained. It accordingly extended the arbitrator's mandate for a further three months to allow the award to be finalised.

Lesson Learnt

Arbitration proceedings have a statutory time limit for the arbitrator to decide the case, but courts will readily extend this deadline when a case is genuinely near completion, so parties should not assume a lapsed deadline kills a nearly-finished arbitration.

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