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SUNITA AGARWAL, PRANAV TRIVEDI
CUBE CONSTRUCTION ENGINEERING LIMITED – Appellant
Versus
GUJARAT HOUSING BOARD – Respondent
JUDGMENT :
SUNITA AGARWAL, C.J.
1. Heard the learned counsels for the parties and perused the record. The present petition invoking the supervisory jurisdiction of this Court under Article 227 of the Constitution of India has been filed to challenge the order dated 09.10.2024 passed by the Commercial Court in Commercial Civil Misc. Application No. 12 of 2024 in Commercial Execution Case No. 30 of 2024.
2. The application namely the Commercial Civil Misc. Application No. 12 of 2024 had been filed by the Award Debtor namely the respondent herein seeking for stay of the award of the arbitral tribunal dated 11.08.2023, invoking Section 36 (3) of the Arbitration and Conciliation Act 1996 (for short “the Arbitration Act 1996”).
3. It may be noted that the award ordering to pay Rs.6,54,60,814/- with interest was passed unanimously by three arbitrators in favour of the petitioner herein, while rejecting the counter claim of the respondent namely the award debtor. The Commercial Court, while passing the order impugned, has granted an absolute stay to the execution of the arbitral award while allowing the application under Section 36 (3) till the decision of the petition. The only reasoning give
An unconditional stay of an arbitral award is impermissible unless specific statutory conditions under Section 36(3) of the Arbitration Act are fulfilled.
The court ruled that a full deposit of the arbitral award amount is mandatory before granting a stay under Section 36 of the Arbitration and Conciliation Act, 1996.
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 emphasized that conditions for staying an arbitral award must be reasonable and justified, adhering to established legal principles.
Point of Law : Since the award was a money decree there should be 100% deposit with respondent being entitled to withdraw amount deposited and furnish solvent security to the satisfaction of High Cou....
Arbitration Award – Execution - By virtue of the provisions of Section 36, since it is a money decree and the Code of Civil Procedure in Order XLI Rule 1(3) mandates imposition of the terms and condi....
The main legal point established in the judgment is the discretion of the court to direct the petitioner to furnish security on the full arbitral award and the impact of the Arbitration and Conciliat....
The recent amendment to Section 36 of the Arbitration Act and the application of the Interest Act in justifying the grant of interest commensurate with the current rate of interest being granted by t....
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