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PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH
SUVIR SEHGAL
Apollo International Limited – Appellant
Versus
Man Structurals Private Limited – Respondent
JUDGMENT :
Suvir Sehgal, J.
Instant revision has been filed under Article 227 of the Constitution of India assailing order dated 06.09.2024, Annexure Pl, passed by the Commercial Court, Gurugram whereby while partly accepting an application under Section 36 (3) of the Arbitration and Conciliation Act, 1996 (for short "the Arbitration Act"), it was directed that the petitioner will deposit the entire decretal amount with the Registrar General of the High Court of Delhi with a request that the amount be not disbursed till the final decision of the main petition under Section 34 of the Arbitration Act.2. Learned Senior Counsel for the petitioner has argued that a memorandum of understanding dated 11.04.2019 was executed between the petitioner and the respondent. They submitted a tender for an award of a contract by the U.P. Power Transmission Corporation. An LOI dated 22.02.2020 was awarded in favour of the parties, which was cancelled without executing a contract. A dispute arose between the parties, which was referred to arbitration and by award dated 10.10.2023, Annexure P2, an amount of Rs. 14,44,70,000/- besides interest and cost of arbitration, was passed in favour of the responde
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.
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.
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.
Adherence to timelines for resolution of arbitration disputes, allowing parties to seek modifications or clarifications as required.
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.
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....
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