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IN THE HIGH COURT OF ORISSA AT CUTTACK
B.P.ROUTRAY
Union of India – Appellant
Versus
R.L. Singh Engineering and Builders Pvt.Ltd., Khurda – Respondent
JUDGMENT :
B.P. Routray, J.
1. Heard Mr. B.Maharana, learned Senior Panel Counsel for the Petitioner and Mr. A.Sanganeria, learned counsel for Opposite Party.
2. Present writ petition is directed against order dated 6th September 2025 at Annexure-1 passed by the learned Commercial Court, Bhubaneswar in ARBP No.37 of 2021.
3. The Petitioner who is the Central PWD under the Ministry of Housing and Urban Development has preferred an application under Section 34 of the Arbitration and Conciliation Act, 1996 challenging the arbitral award dated 22nd June 2021, wherein the Petitioner was directed to pay certain amount towards the interest @18% per annum along with Rs.18,76,397/- towards the cost of deviation work. All total an amount of Rs.1,11,31,771/- was directed to be paid by the Petitioner to the Opposite Party.
4. The learned Commercial Court while admitting the application under Section 34 of the Arbitration and Conciliation Act directed for deposit of 100% of the award amount by the Petitioner within such period. This is the subject of grievance of the Petitioner that such direction to deposit 100% of the award amount for stay of the execution of the award amount during pendency o
The court determined that a Central Government authority is not required to deposit the total arbitral award amount for stay of execution pending appeal under exceptional circumstances.
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 held that arbitration awards must be enforced without delay, stressing the executing court's duty to assess compliance, even amidst pending appeals, unless a stay is explicitly granted.
Court emphasizes equity in execution of arbitral awards under challenge, mandating expedited resolution of related petitions while staying execution proceedings.
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 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....
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