UNION OF INDIA Vs. M. V. ENGINEERING COMPANY

JUDGEMENT

(1.) By this petition filed under Article 227 of the Constitution, the petitioners have challenged the order dated 05.01.2021 whereby the petitioners application being IA No.02/2020 for stay of execution of the arbitral award has been rejected.

(2.) The brief facts are that the Arbitrator was appointed under Section 11(6) of the Arbitration and Conciliation Act (hereinafter referred to as the Act ) and on conclusion of the arbitration proceedings, the Arbitrator had passed the award dated 07.09.2014. The petitioners being aggrieved with the said award have filed the application under Section 34 of the Act. In the meanwhile, the respondent had filed the application under Order 21 Rule 11 of the CPC for execution of the award wherein notices were issued to the petitioners and after entering appearance in the execution proceedings, petitioners had filed the application under Order 21 Rule 99 and 101 read with Section 151 of the CPC on 23.12.2020 with a prayer to keep the execution proceedings in abeyance or stayed till the petitioners application under Section 34 of the Act is decided. The Executing Court by the impugned order dated 05.01.2021 has rejected the said application.

(3.) Learned counsel appearing for the petitioners submits that the executing court has committed an error in rejecting the petitioners application without appreciating the correct legal position. He has submitted that in the present case, unamended Section 36 of the Act will apply and there will be automatic stay of the award pending the application under Section 34 of the Act.