The court upheld the direction to deposit the arbitral award amount into an interest-bearing account pending Section 34 proceedings, finding that balancing equities justified the deposit without immediate release to the respondent due to insufficient evidence of financial hardship.

ORAL ORDER

(PER : HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE SUNITA AGARWAL)

1. This is a wholly misconceived appeal filed under Section 37 of the Arbitration and Conciliation Act, 1996 seeking to challenge the order dated 21.02.2026 passed by the Additional District Judge, Ankleshwar, Bharuch in Civil Misc. Application (DC) No. 134 of 2023, which has been filed by the claimants/land holders under Section 9 read with Section 36(2) of the Arbitration and Conciliation Act, 1996.

2. The arbitral award is dated 02.09.2023 and Section 34 applications filed by both the parties are pending consideration before the Court concerned. The respondent has filed an application seeking for direction to the appellant to deposit the compensation amount awarded by the arbitrator under Section 3G(5) of the National Highways Act, 1956 stating that he is suffering from financial hardship and are in dire need of the awarded amount.

3. A perusal of the order impugned indicates that balancing equities, the following order has been passed :-

“ORDER

1. The present application filed by the Respondent below Exh. 11 in CMA DC No. 134 of 2023, is partly allowed.

2. The Applicant is hereby directed to deposit the entire awarded compensation amount as per the arbitral award dated 02.09.2023 before this Hon'ble Court within a period of 60 days from the date of this order.

3. The prayer for release of 50% of the deposited amount to the Respondent is rejected at this stage, in absence of cogent documentary evidence of financial hardship and in absence of disclosure regarding mode of restitution if the award is set aside or modified.

4. It is hereby directed to the Nazir that, the deposited amount shall be kept in an interest-bearing fixed deposit with a nationalized bank till final disposal of CMA DC No. 134 of 2023, subject to further orders of this Court.

5. No order as to costs.”

4. While the applicant has been directed to deposit the entire awarded amount as per the arbitral award dated 02.09.2023 within a period of 60 days, the prayer for 50% release of the deposited amount made by the respondent is rejected noticing that in absence of cogent documentary evidence of financial hardship and in absence of disclosure regarding mode of restitution, if the award is set aside or modified, such a relief cannot be granted. The deposits made by the NHAI are directed to be invested in an interest bearing fixed deposit account with a nationalised bank till the final disposal of the application under Section 34 of the Arbitration and Conciliation Act, 1996, viz. CMA DC No. 134 of 2023.

5. Taking note of the operative portion of the order, we do not find any good ground to intervene. The present appeal is dismissed accordingly. No order as to costs.

6. On the request made by Ms. Archana Amin, learned counsel for the appellant, further 60 days time is granted to deposit the amount as directed under the order impugned. The concerned Judge shall make an endeavour to decide the Section 34 application as expeditiously as possible.