Back
AVNEESH JHINGAN
Punjab State Civil Supplies Corporation Ltd – Appellant
Versus
Ashok Rice Mills – Respondent
AVNEESH JHINGAN, J.
1. This revision petition is filed by petitioner- Punjab State Civil Supplies Corporation Ltd (for brevity 'PUNSUP') aggrieved of order dated 20th May, 2019, dismissing the execution petition .
2. The relevant facts are that PUNSUP and M/s Ashok Rice Mills (for short 'the miller') entered into Custom Rice Milling agreement for the crop year 2011-12. The terms and conditions provided for dispute resolution through arbitration. The arbitration proceedings initiated at the instance of petitioner culminated in award dated 27th June, 2017. The objections under Section 34 of Arbitration and Conciliation Act (for short 'the Act') were filed by the miller. The execution application filed by the PUNSUP was dismissed on the ground that the objections were pending and execution petition was filed after filing of the objections. Further that approach of PUNSUP was unethical as different counsel were engaged in similar cases between the same parties. It was held that during pendency of objections PUNSUP had no right to file execution.
3. Learned counsel for the PUNSUP submits that there was no stay in favour of the miller and the execution petition could not have been dismissed
The pendency of objections under Section 34 of the Arbitration and Conciliation Act does not automatically result in a stay of the arbitral award, and the award can be enforced like a decree of court....
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....
An exceptional case must be made out for a stay of execution of a money decree.
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 ....
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.
Scope to stay execution proceeding by Executing Court is limited – It is only an interim arrangement enabling the party to obtain stay order from appropriate Court, including Appellate Court.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
