SHIMLA: The High Court of Himachal Pradesh has taken notice of a significant backlog of arbitration cases and the strain on Divisional Commissioners who serve as Arbitrators under the NHAI Act.
In response, the court has suggested that it might be more fitting to grant these arbitration powers to serving or retired District Judges or Additional District Judges instead.
The ruling, ordered by Justice Tarlok Singh Chauhan, comes here today after numerous petitions seeking extensions for Arbitrator mandates were filed, raising common legal and factual questions.
Under the NHAI Act, the Central Government had appointed the Divisional Commissioner of Shimla for the revenue districts of Shimla and Solan, and the Divisional Commissioner of Mandi for the revenue districts of Bilaspur, Mandi, and Kullu to act as Arbitrators.
However, the court learned that a staggering 869 cases are pending before the Shimla Divisional Commissioner, and an even more substantial backlog of 2660 cases awaits the Mandi Divisional Commissioner. Some of these cases date back to as far as 2015.
The court was made aware by the petitioners' lawyers that the Divisional Commissioners, Shimla and Mandi, are burdened not only with arbitration cases but also with revenue-related matters and routine administrative duties.
This heavy workload has left them with insufficient time to handle these arbitration cases effectively. As a result, claimants and their legal representatives have to endure long waits for decisions, leading many to eventually seek legal recourse in the courts.
Unfortunately, this only contributes to the already overwhelming caseload of the courts.
Recognizing the gravity of the issue, the court emphasized the need for all stakeholders, particularly the NHAI and the Central Government, to address the matter.
As a temporary measure, the court has extended the deadline for completing ongoing arbitration proceedings in these cases until February 28, 2024.
The Deputy Solicitor General of India, H.P., has been directed by the court to provide a progress report based on this order within the next four weeks.
