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SHEKHAR B. SARAF
Laxmi Pat Surana – Appellant
Versus
Pantaloon Retail India Limited – Respondent
JUDGMENT
Shekhar B. Saraf, J. - By an order dated April 28, 2022, a co-ordinate bench of this Court, while disposing of an application (IA No. G.A. 1 of 2022 in A.P. 698 of 2016), determined whether the sum to be secured for grant of stay of the Award as per Section 36 of the Arbitration and Conciliation Act, 1996 ('the Act') would include the post award interest. While ruling in the affirmative, this Court inter alia directed the following -
'Since the value and sum of the Award as it stood on 1st April, 2022 amounts to Rs. 26,53,74,118 and the respondent no. 1 is already secured to the extent of Rs. 12 crores, the petitioner shall deposit 70% of the balance amount of Rs. 14,53,74,118/- (Rs. 26,53,74,118 - Rs. 12,00,00,000) i.e. Rs. 10,17,61,882/- with the Registrar, Original Side of this court within four weeks from date. The petitioner shall have the option of depositing 50% of the said amount (i.e., Rs. 5,08,80,941/-) by way of a bank guarantee and the remaining 50% (Rs. 5,08,80,941/-) in cash. If the petitioner defaults in complying with such condition within the stipulated time, the respondent no.1 award-holder shall be free to take appropriate steps in the execution proceeding
The main legal point established in the judgment is that the sum to be secured for grant of stay of the Award as per Section 36 of the Arbitration and Conciliation Act, 1996 would include the post aw....
The main legal point established in the judgment is that post-award interest is mandatory, and the court has discretionary power to grant stay of an arbitral award, guided by the principles under Ord....
The main legal point established in the judgment is that under Section 36(3) of the Arbitration Act, there is a requirement for depositing 100% of the awarded amount for the grant of stay, and the Co....
The Court emphasized the limited scope of challenge against an award under the Act and balanced the equities between the parties in granting or modifying the order.
The court emphasized the limited scope of interference by the court in arbitration proceedings and the need to make a prima facie case for granting a stay of execution of the arbitration award.
The court clarified that award debtors must deposit the full awarded sum as a condition for staying enforcement, emphasizing that both public and private parties are subject to the same requirements ....
The sufficiency of a bank guarantee as security for stay of execution and the scope of Order XXI Rule 26(1) in enabling a judgment debtor to apply to the Appellate Court for stay.
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