VidhiSangh

Supreme Court of India · 07/10/2025

LIFESTYLE EQUITIES C.V. & ANR. versus AMAZON TECHNOLOGIES INC.

[2025] 10 S.C.R. 463 · 2025 INSC 1190

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Summary

Giving reasons for its earlier dismissal of the decree-holders' SLP, the Supreme Court upheld the Delhi High Court's stay, without deposit and on an undertaking, of an ex parte money decree of about Rs 339 crore against Amazon Technologies. It held that deposit is not a condition precedent to a stay under Order XLI Rule 5 CPC; money decrees are ordinarily stayed only on deposit as a rule of prudence, but an unconditional stay may be granted in an exceptional case, such as a decree that is egregiously perverse, riddled with patent illegalities or facially untenable. Security may include an undertaking.

Issues

  1. Whether an appellate court may stay execution of a money decree under Order XLI Rule 5 CPC without requiring deposit of the decretal amount or tangible security.
  2. Whether Order XLI Rules 1(3) and 5(5) CPC make deposit or security mandatory before a money decree can be stayed.
  3. Whether the second proviso to Section 36(3) of the Arbitration and Conciliation Act, 1996 limits unconditional stays of money decrees to cases of fraud or corruption.
  4. Whether delivery of suit papers and notice of an ex parte injunction amounted to service of summons, attracting the second proviso to Order IX Rule 13 CPC.
  5. Whether the High Court erred in granting an unconditional stay on the facts.

Provisions considered

Held

Result

Special leave petition dismissed (reasons for the order dated 24.09.2025); the High Court's unconditional stay upheld; the regular first appeal to be decided on its own merits with all contentions open; Registry directed to send the judgment to all High Courts.

Judgment PDF: Supreme Court of India, [2025] 10 S.C.R. 463.