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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
JASGURPREET SINGH PURI
Advance India Projects Ltd. – Appellant
Versus
Poonam Gupta – Respondent
JUDGMENT :
Jasgurpreet Singh Puri, J.
The present petition has been filed under Article 227 of the Constitution of India for setting aside the impugned order dated 25.08.2025 (Annexure P-A), whereby the application under Section 36(2) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the Act') seeking stay of the arbitral award dated 10.02.2025 (Annexure P-1) has been allowed on the onerous condition of depositing Rs. 85,00,000/-.
2. Mr. Anand Chhibber, learned Senior Counsel appearing on behalf of the petitioner with Mr. Sandeep Verma, learned counsel submitted that it is a case where the petitioner company is the judgment debtor against whom an arbitration award was passed. The award was assailed by the petitioner by filing objections under Section 34 of the Act and along with the objections, an application under Section 36(2) of the Act seeking stay of the operation of the impugned award dated 10.02.2025 was also filed. He while referring to the award passed against the petitioner submitted that although in the operative part of the order the total amount of the award which was passed was Rs. 87,58,264/- along with interest @ 12% on the awarded amount but
The court upheld that a stay of an arbitral award requires a reasonable security deposit, and statutory bars apply to revision applications against interlocutory orders in commercial matters.
An unconditional stay of an arbitral award is impermissible unless specific statutory conditions under Section 36(3) of the Arbitration Act are fulfilled.
Court emphasizes equity in execution of arbitral awards under challenge, mandating expedited resolution of related petitions while staying execution proceedings.
The court emphasized that conditions for staying an arbitral award must be reasonable and justified, adhering to established legal principles.
The court affirmed its jurisdiction to review its orders while highlighting that a mere filing of a review petition does not grant a stay on award enforcement unless complying with statutory requirem....
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.
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....
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