Can Court Grant stay for implementation of Section 9 post Act 3 2016

820 votes

Yes. The court can grant a stay on the award. The party challenging the arbitral award must also apply for stay. Reference may be made to Section 36 of Arbitration and Conciliation Act ( post amendment)

Advocate R. Venkat Prabhat LawRato

619 votes

If an application has been brought before the court under section 34 of the arbitration and conciliation act challenging the order of the arbitral Tribunal then yes the court may grant stay till its final disposal considering that there are some valid argument which are still left to be heard.

Advocate Pulkit Prakash LawRato

819 votes

If I get you correctly, your query is whether the Court (post the Amendment of the Arbitration and Conciliation Act, 1996 in 2013) can stay the operation of the Award?

Firstly, one needs to understand as to whether the Arbitral Proceeding, where the Award has been passed commenced prior to or after 23rd October 2015 (i.e. the date the Amended Arbitration Act came into effect) since as per Section 26 of the Amendment Act, 2015, the Act would only apply in cases where the Arbitral Proceedings commenced before the commencement of the Amending Act of 2015.

If the Arbitral Proceedings commenced after 23rd October 2015, then the New Act applies and as per Amended Section 36 (3), unless the Court (in a Petition filed under Section 34 challenging the Award), grants a Stay of the Award after hearing the Stay Application filed under Section 36 (2), there would be no automatic stay of Award.

If the Arbitral Proceedings commenced prior to 23rd October 2015, then the moment Notice is issued in a section 34 Petition, then as per Judgment of National Aluminium Co. Ltd. vs. Pressteel & Fabrications (P) Ltd.
(2004) 1 SCC 540, there would be an automatic stay of operation of the Award.

The position is no different legally qua the Government.

P.S: This having being said, there have been contrasting views on application of the Amending Act 2015 (especially on interpretation of Section 26 of the Amending Act 2015), which have culminated into various SLPs before the Supreme Court and a final decision is yet to come on the issue.

Advocate Bhuvan Mishra LawRato