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GURVINDER SINGH GILL
National Highways Authority of India – Appellant
Versus
Ashok Kumar Garg – Respondent
| Table of Content |
|---|
| 1. details of the arbitration award and petition (Para 1 , 2 , 3) |
| 2. petitioner's argument on inconsistency in orders (Para 4) |
| 3. court's review of applicable provisions (Para 5 , 6 , 7) |
| 4. analysis of court's orders in context of precedent (Para 8 , 9 , 10 , 11) |
| 5. dismissal of the petition (Para 12) |
JUDGMENT
Mr. Gurvinder Singh Gill, J.
The petitioner - National Highways Authority of India (NHAI) assails order dated 17.01.2023 (Annexure P-6) vide which the learned Additional District Judge, Patiala, while allowing an application filed by the petitioner under section 36(2) of the Arbitration and Conciliation Act, 1996 (for short 'the Act') seeking stay of operation of the award dated 27.09.2019, imposed a condition to deposit the entire enhanced awarded amount alongwith requisite interest, within 4 months, in terms of the award dated 27.09.2019 of Arbitrator, before the CALA and directed that 50% of amount shall be released to the land-owner subject to his furnishing indemnity bonds of double of the amount with one surety of the like amount and balance of the 50% amount be kept in the shape of FDR and not to be released till final disposal of the petition under Section 34
The court mandated the payment of arbitration-awarded compensation unless a stay is obtained, underscoring enforcement procedures under the Arbitration and Conciliation Act.
The availability of alternate remedies under Section 36 of the Act of 1996 for execution and the pending challenge to the arbitral award under Section 34 were central to the court's decision.
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....
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 directed NHAI to deposit 50% of the compensation amount with the Executing Court and make an endeavor to decide the pending proceedings within six months. The balance amount of compensation....
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