Award enforcement when application under S 34 of Arbitration Act pending

Tilak Marg Forum for Legal Questions Forums Arbitration Award enforcement when application under S 34 of Arbitration Act pending

This topic contains 1 reply, has 2 voices, and was last updated by Dr. Ashok Dhamija Dr. Ashok Dhamija 6 months ago.

  • Author
    Posts
  • #4026

    1. Can one go for award enforcement (money decree) when section 34 and award stay application are filled but no stay is given so far.
    2. If yes then what happens of section 34 application after award is enforced.

  • #4035

    I think the issue mentioned by you is directly covered in Section 36(2) of the Arbitration and Conciliation Act, 1996. Section 36 is reproduced below:

    36. Enforcement.— (1) Where the time for making an application to set aside the arbitral award under Section 34 has expired, then, subject to the provisions of sub-section (2), such award shall be enforced in accordance with the provisions of the Code of Civil Procedure, 1908 (5 of 1908), in the same manner as if it were a decree of the court.

    (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 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).”

    It should be clear from Section 36(2) that where an application to set aside the arbitral award has been filed in the Court under Section 34 of the said Act, 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.

    Thus, if not such stay has been granted by the court on the enforcement of the award, steps may be initiated for enforcement of the award, subject to any conditions imposed by the court.

         


    Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers.

You must be logged in to reply to this topic.

Facebook Comments

[Note: These Facebook Comments are not monitored by Forum Editor. Hence, they may not be replied to. If you want to ask a free legal question, click here.]