16. Time limits for making arbitral awards
Under section 72(1) of the Arbitration Ordinance (Cap. 609), an arbitral tribunal generally has the power to make an award at any time, unless the parties have agreed otherwise. However, parties may choose to include a provision requiring the award to be rendered within a specified period.
However, if such a time limit is included, it should be realistic and should allow extensions by agreement, by the institution or by the court where appropriate. Relying solely on the agreement of the parties for extensions is discouraged, as securing such cooperation is often impossible once the relationship has soured.
To prevent the process from failing due to unforeseen delays, section 72(2) empowers the court to extend the time limit for making an award. This is a discretionary power that can be exercised whether the original time limit has expired or not. The court generally takes a supportive role, enlarging time limits to facilitate the finality of the process rather than allowing it to be derailed by procedural technicalities.
Any order extending the time for making an award is final and not subject to appeal under section 72(3).
Clear timeframes can help manage expectations and encourage efficiency, but overly rigid deadlines may create unnecessary procedural disputes.
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