Writ petition challenging an order imposing a conditional stay on an arbitral award execution proceeding with a deposit condition. Court refused intervention as the order complied with the Arbitration and Conciliation Act.
Petition dismissed at motion stage; impugned order imposing conditional stay upheld.
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AFR
HIGH COURT OF CHHATTISGARH, BILASPUR
W.P.(227) No. 22 of 2019
---- Petitioners
Versus
Ashok Leyland Finance, presently operating as IndusInd, Bank Branch Office Transport Nagar, P. S. Korba, District Korba, Chhattisgarh.
---- Respondent
For Petitioners : Mr. Mukesh Sharma, Advocate For Respondent : Mr. Chetan Singh Chauhan, Advocate
Hon'ble Shri Justice Rajendra Chandra Singh Samant
Order On Board
19/07/2021
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its recovery, the same has been obtained on supurdnama by the petitioner No.1. Respondent then took over the possession of the vehicle from the petitioner No.1 on 19.04.2006 and sold the same without notice to the petitioners. Subsequent to which, the complaint has been filed by the petitioners, before the District Consumer Dispute Redressal Forum, Korba. The respondent then initiated an arbitration proceeding concealing the fact of the pendency of the proceeding before, the District Consumer Dispute Redressal Forum, Korba. Arbitration proceeding has been concluded ex-parte vide award dated 22.07.2008. The respondent has filed an application under Section 36 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as “the Act, 1996”) for execution of award dated 22.07.2008.
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a petition for setting-aside the arbitration award and they filed an application under Section 36 (2) of the Act, 1996 praying for order of stay of the arbitral award on which, the learned District Judge has passed the impugned order.
Page 4 of 5 unenforceable, unless, the Court grants an order of stay of the operation of the said arbitral award, therefore, the learned execution Court has not committed any error in passing conditional order of stay on the application of the petitioners under Section 36 (2) of the Act, 1996. It is prayed that the petition be dismissed.
“36. Enforcement.—
(2) Where an application to set-aside the arbitral award has been filed in the Court under section 34, the filing of such an application shall not by itself render that award unenforceable, unless the Court grants an order of stay of the operation of the said arbitral award in accordance with the provisions of sub-section (3), on a separate application made for that purpose.
(3) Upon filing of an application under sub-section (2) for stay of the operation of the arbitral award, the Court may, subject to such conditions as it may deem
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fit, grant stay of the operation of such award for reasons to be recorded in writing:
Provided that the Court shall, while considering the application for grant of stay in the case of an arbitral award for payment of money, have due regard to the provisions for grant of stay of a money decree under the provisions of the Code of Civil Procedure, 1908 (5 of 1908).”
Sd/(Rajendra Chandra Singh Samant) Judge
Balram
3 issues framed by the court
Whether the High Court should interfere with the execution Court's conditional stay order on the arbitral award imposed under Section 36(3) of the Act.
Whether the petitioners are entitled to set-off claims based on a Consumer Commission award that is currently under challenge before the National Commission.
Whether the filing of a Section 34 application by the petitioners renders the arbitral award unenforceable without a stay order.
2 provisions across 1 enactments
Premlal Khande
Satish Kumar Khande
Ashok Leyland Finance
Rajendra Chandra Singh Samant
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
