UNION OF INDIA Vs. RASHMI METALIKS LIMITED

JUDGEMENT

(1.) In the present case, there is an application under Sec. 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the Act') filed by the Union of India through South Eastern Railways seeking an order for setting aside of the arbitral award dated May 10, 2021 read with corrections dated August 18, 2021 to the said arbitral award. The award debtor/petitioner has filed two interlocutory applications being GA/1/2021 under Sec. 36 of the Act seeking an order for stay on the entire arbitral award whilst pending adjudication of its Sec. 34 application and GA/2/2023 seeking amendment of the pleadings and grounds in Sec. 34 application.

(2.) In the meanwhile, the respondent/ claimant Rashmi Metaliks Limited has filed an execution application being EC/99/2022 seeking enforcement of the said arbitral award.

(3.) Pursuant to 2015 amendment to the Act, there is no automatic stay on the enforceability of an arbitral award in the event of filing and pendency of an application for setting aside the arbitral award. Instead the award debtor is required to successfully file a separate application for obtaining a stay on execution of the arbitral award.