IMPORTANT POINT
The Court has the power under section 36 sub-sections 1 and 3 of the Arbitration Act to direct the appellant to secure a sum with the court and grant a stay of the execution proceeding to prevent potential prejudice to the appellant during the appeal.

JUDGMENT :

This is an appeal under section 37 of the Arbitration and Conciliation Act, 1996 ( for short the ‘Arbitration Act’). The appellant had suffered an Award. The appellant filed an application under section 34 of the Arbitration Act seeking setting aside of that award before the jurisdictional Civil Court, being Other Appeal No. 03 of 2022.

2. By the impugned judgment and order dated November 30, 2022, the said setting aside application was dismissed and the jurisdictional Civil Court had observed that, in terms of the majority award, the appellant was to pay a sum of Rs.7,86,88,850/-(Rupees seven crores eighty six lakhs eighty eight thousand eight hundred fifty only) along with interest.

3. Today, Ms.Shipra Mandal, learned counsel appearing for the respondent, being the Award Holder, submitted that the respondent had already put the said award into execution before the same jurisdictional Civil Court and the execution proceeding is pending.

4. Mr. V.D.Sivabalan, learned counsel appearing for the appellant submitted that, unless the operation of the impugned order and consequently the award is stayed, the appellant will be seriously prejudiced, as the execution proceeding is going on and this appeal will also become infructuous. He further submitted that, the appellant has an excellent chance of success in this appeal as the order passed by the jurisdictional Civil Court dismissing the setting aside application cannot sustain in law.

5. Considering the rival contentions of the parties and considering the materials on record, this Court is of the view that, in the event, during the pendency of this appeal, if the execution proceeding proceeds, then, the appeal may become infructuous and the appellant would suffer prejudice.

6. For those reasons, the appellant is directed to secure a sum of Rs.7,50,00,000.00 (Rupees Seven crores fifty lakhs only), in terms of the provisions laid down under section 36 sub-sections 1 and 3 of the Arbitration Act, with the learned Registrar of this Court, positively within a period of six weeks from date.

7. For a period of six weeks from date, there shall be an unconditional stay of the execution proceeding, being Other Execution Case No. 1 of 2022 pending before the learned District Judge, at Port Blair.

8. In the event, the said amount is deposited, as directed above, then, the said execution case shall be remained stayed until this appeal is disposed of. In the event, the amount is not deposited, the stay granted by us today, shall stand vacated automatically without any reference to this Court immediately on the day six weeks elapses from today and the respondent shall be free to proceed with the execution proceeding without any fetter.

9. In the event, the said sum is deposited, as directed above, the learned Registrar shall deposit the said sum in an interest bearing fixed deposit account with a Nationalized Bank of his/her choice and shall file a report before the Court, when the matter shall be taken up next.

10. In the event, the deposit is made, as directed above, the execution proceeding and the award, in their entirety, shall remain stayed until disposal of this appeal.

11. The lower court record is directed to be brought in before this Court upon compliance of all the necessary formalities by the appellant within a period of four weeks from date. Upon receiving the lower court records, the Registry shall issue notice upon the parties so that the appellant can file paper books within two weeks from the date of receiving of such records. The appellant, in turn, shall file paper books in compliance of the rules within a further period of four weeks from date after such notice being received by them from the Registry. Copy of the paper books shall be furnished upon the respondent.

12. With the above directions, the stay application, being CAN/1/2023 stands disposed of. The appeal is admitted and expedited.

13. After compliance of the directions made above including service of paper