In Brief
International Seaport Dredging won an arbitral award of approximately Rs 21 crores against port authority Kamarajar Port Limited for dredging work disputes. When the port authority challenged the award and sought a stay, the High Court granted conditional stay requiring only a bank guarantee. The Supreme Court allowed the appeal, holding that statutory bodies cannot receive preferential treatment in arbitration. The Arbitration Act is self-contained and does not distinguish between government and private entities. The Court modified the stay order to require 75% deposit of the decretal amount (including interest) instead of a mere guarantee, applying equal treatment principles and Order XLI Rule 5 of CPC as guidance, not strict mandate.
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