RAJ MOHAN SINGH
National Collateral Management Services Ltd. – Appellant
Versus
Haryana Cooperative Supply and Marketing Federation Ltd. – Respondent
JUDGMENT :
RAJ MOHAN SINGH, J.
1. The petitioner has assailed the order dated 06.08.2021 passed by the Additional District Judge, Chandigarh, whereby the Court has allowed the application for staying the operation of the award dated 12.11.2018 corrected vide order dated 14.01.2019 during pendency of the objection petition under Section 34 of the Act.
2. Perusal of the impugned order would show that the stay application has been entertained, thereby unconditionally staying the operation of the award dated 12.11.2018 and corrected vide order dated 14.01.2019 in violation of Section 36 of the Arbitration and Conciliation Act, 1996 as amended from time to time.
3. Learned Senior Counsel for the petitioner submitted that the impugned order has been passed in utter disregard to the provisions of Section 36(2)(3) of the Act. The filing of objection petition under Section 34 of the Act shall not by itself render that award unenforceable, unless the Court grants an order of the operation of the stay of the arbitral award in accordance with the provisions of sub Section 3 on a separate appli
Board of Control for Cricket in India Vs. Kochi Cricket Private Limited and others
Pam Developments Private Limited Vs. State of West Bengal, (2019) 8 SCC 112
The power to grant unconditional stay of an arbitral award is not unfettered and is subject to conditions, including the condition of securing the award by deposit in Court.
Automatic suspension of execution of the award, the moment an application challenging the said award is filed under section 34 of Act leaving no discretion in court to put parties on terms, in court ....
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....
An exceptional case must be made out for a stay of execution of a money decree.
An unconditional stay of an arbitral award is impermissible unless specific statutory conditions under Section 36(3) of the Arbitration Act are fulfilled.
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 that the unamended Section 36 of the Arbitration and Conciliation Act does not provide for automatic stay of the award pending the application unde....
The judgment establishes the principle that orders for stay of arbitral awards, passed in a notice of motion seeking stay under Section 36 of the Arbitration and Conciliation Act, 1996, are not appea....
The court's decision emphasized that no case was made out for unconditional stay against the enforcement of the arbitral award.
The court emphasized that conditions for staying an arbitral award must be reasonable and justified, adhering to established legal principles.
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