National Highways Authority Of India vs M/S. MBL Infrastructure Limited

Arijit Banerjee, J

The Court : This application has been taken out for stay of operation of the arbitral award dated 19th February, 2014 passed in an arbitration

proceeding between the applicant/petitioner and the respondent.

The respondent was the claimant before the learned arbitral tribunal. The learned arbitrator passed an award for an aggregate sum of Rs.3,90,92,936/-

in favour of the claimant/respondent and also directed that the said amount would attract interest at the rate of 10% per annum from the date of the

award till the date of payment.

Learned Advocate for the applicant/petitioner submits that an application under Section 34 of the Arbitration and Conciliation Act, 1996 challenging

the said award was filed within the statutory time period. Such application is pending. As on the date of filing of that application, the law was that filing

an application for setting aside of an arbitral award would operate as an automatic stay of operation of the award. However, the law was amended in

2015. Thereafter, it has become necessary for a party aggrieved with the award to obtain stay of operation of the award from the Court. Accordingly,

this application has been filed.

I have heard learned Counsel for the petitioner and learned Counsel for the respondent (award-holder).

Having considered the facts and circumstances of this case, in my opinion, it will be proper to stay the operation of the award subject to the petitioner

depositing the entire awarded amount with the Registrar, Original Side, High Court. The awarded amount along with interest as on date would be

much in excess of Rs.4 crores. However, I think that ends of justice will be served if the petitioner deposits Rs.4 crore minus the amount that the

petitioner has kept separately in a fixed deposit as per orders of this Court with the Registrar, Original Side of this Court. Such deposit will be made

with the Registrar, Original Side within three weeks from date. The Registrar, Original Side, shall invest the amount so deposited by the petitioner in a

fixed deposit with a scheduled bank which offers the highest rate of interest and shall keep the fixed deposit renewed from time to time until further

orders of this Court.

There shall be an unconditional stay of operation of the award in question for three weeks from date. The order of stay shall continue till the disposal

of the application under Section 34 of the Arbitration and Conciliation Act, 1996 subject to the petitioner depositing the aforesaid amount with the

Registrar, Original Side within the time period stipulated.

It is made clear that if the petitioner fails to deposit the amount with the Registrar, Original Side as indicated above within the time period fixed, the

order of stay shall automatically stand vacated after three weeks.

No useful purpose will be served by keeping this application pending. Since I have not called for affidavits, the allegations made in the application are

deemed not to be admitted by the respondent.

Accordingly, GA No.437 of 2020 is disposed of.