VidhiSangh

Supreme Court of India · 12/07/2019

G H PAM DEVELOPMENTS PRIVATE LTD. versus STATE OF WEST BENGAL

[2019] 9 S.C.R. 252 · 2019 INSC 755

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Summary

The State was not entitled to an unconditional stay of a money award merely by invoking the government exemption from furnishing security under the Code of Civil Procedure. Section 36 of the Arbitration and Conciliation Act, as amended in 2015, required a separate stay application and permitted appropriate conditions, with equal treatment of government and private parties. Even assuming the CPC exemption applied, it did not prevent a direction to deposit the awarded amount.

Issues

  1. Whether the State could obtain an unconditional stay of an arbitral money award by relying on Order XXVII Rule 8A CPC.
  2. How the CPC provisions concerning stay of money decrees guide the exercise of power under amended Section 36.

Provisions considered

Held

Result

Appeals allowed; the High Court’s unconditional stay dated 13 December 2018 was quashed and the executing court’s order dated 3 October 2018 restored. The award holder could seek release of the attached amount under that order. No costs.

Judgment PDF: Supreme Court of India, [2019] 9 S.C.R. 252.