Project Director Vs Samala Anjaneyulu — Arbitration | Andhra Pradesh HC (2026)

Project Director Vs Samala Anjaneyulu — Arbitration | Andhra Pradesh HC (2026)

What the court decided

AI extract

Outcome

Civil Revision Petition disposed of: XI Additional District Judge, Gudivada directed to consider and decide the stay application in A.O.P.No.21 of 2025 (seeking stay of the award dated 29.06.2019) in accordance with law after hearing the 1st respondent, as expeditiously as possible, preferably within four weeks; till disposal of the stay application, further execution proceedings pursuant to the award dated 29.06.2019 and the impugned order dated 23.10.2025 shall remain stayed, subject to the petitioner depositing 1/3rd of the amount under execution before the Executing Court within three weeks; no order as to costs; miscellaneous petitions, if any, stand closed.

Issue for consideration

Whether further execution of the award dated 29.06.2019 (including the attachment order dated 23.10.2025 in E.P.No.574 of 2021) should be stayed pending disposal of the application seeking stay of the award, which has remained pending and undisposed of since 2022.

Court's answer

In terms of Section 36(2) of the Arbitration and Conciliation Act, 1996, an Award becomes executable unless stayed by an order of the Court.

Ratio / Principle

Once an application seeking grant of stay of the Award is filed, the same is required to be considered and disposed of expeditiously, so as to balance the rights of both parties and to avoid rendering the proceedings under Section 34 of the Act, 1996 infructuous.

Key takeaways

The Civil Revision Petition is disposed of with a direction to the XI Additional District Judge, Gudivada, to consider the application filed in A.O.P.No.21 of 2025 seeking stay of the Award dated 29.06.2019 and pass appropriate orders in accordance with law, after giving due opportunity of hearing to the 1st respondent, as expeditiously as possible, preferably within four (04) weeks from receipt of a copy of the order.ratio¶45
Till disposal of the stay application, the further execution proceedings pursuant to the impugned Award dated 29.06.2019 and the impugned order dated 23.10.2025 shall remain stayed.ratio¶47

Detailed headnote1 paragraphs

Arbitration and Conciliation Act, 1996 — Sections 34, 34(3) and 36(2); National Highways Act, 1956 — Section 3-G(5); Civil Revision Petition under Section 115 CPC (caption also invokes Article 227) — Execution of arbitral award — Attachment in E.P.No.574 of 2021 (order dated 23-10-2025, XIII Additional District and Sessions Judge, Vijayawada) — Enhancement award dated 29.06.2019 passed by Arbitrator & Joint Collector, Krishna in Rc.No.G2A/226/2018 — Judgment-debtor's Section 34 petition (A.O.P.No.35 of 2021, delay condoned) and stay application (made over to XI Additional District Judge, Gudivada as A.O.P.No.21 of 2025) pending undisposed since 2022 — An award is executable unless stayed (Section 36(2)), but a pending stay application must be considered and disposed of expeditiously to balance the rights of both parties and avoid rendering the Section 34 proceedings infructuous — HELD: XI Additional District Judge, Gudivada to decide the stay application preferably within four weeks after hearing the 1st respondent; till then, execution pursuant to the award dated 29.06.2019 and the attachment order dated 23.10.2025 shall remain stayed, subject to the petitioner depositing 1/3rd of the amount under execution before the Executing Court within three weeks — Civil Revision Petition disposed of; no order as to costs.