Govt Authority Must Furnish Security Before Getting Stay On Award U/S 36(3) Of A&C Act, No Special Treatment Can Be Given: Calcutta High Court
1 month, 3 weeks ago

Govt Authority Must Furnish Security Before Getting Stay On Award U/S 36(3) Of A&C Act, No Special Treatment Can Be Given: Calcutta High Court

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The Calcutta High Court bench of Justice Shampa Sarkar has held that special treatment cannot be given to the government while hearing a petition seeking stay on the enforcement of the award under section 36 of the Arbitration Act. Per contra, the respondent placed reliance on the Supreme Court judgment in Pam Developments Private Limited Vs. State of West Bengal where it was held that Order 27 Rule 8-A of the Code of Civil Procedure would not govern the provisions of Section 36 of the Arbitration Act. The court noted that the Supreme Court in Pam Development held that Arbitration is essentially an alternate dispute resolution mechanism curated to provide a swift and quick resolution of disputes therefore if money decree award passed against the government is allowed to be stayed unconditionally, it would defeat the very purpose of the Arbitration Act as the award holder would be deprived of the fruits of the award on mere filming an application under section 34 of the Arbitration Act. It held that “Keeping the aforesaid in consideration and also the provisions of Section 18 providing for equal treatment of parties, it would, in our view, make it clear that there is no exceptional treatment to be given to the Government while considering the application for stay under Section 36 filed by the Government in proceedings under Section 34 of the Arbitration Act.” In light of the above discussion, it cannot be said that the government is exempted from furnishing security or deposit of the awarded amount before the stay on the award can be granted.

History of this topic

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