In Brief
A contractor was engaged under a Special Repair Programme for National Highway-II and raised arbitration claims for dues amounting to Rs. 2.87 crores. The arbitrator granted substantial relief. The State of West Bengal challenged the award and sought unconditional stay relying on a CPC provision exempting government from furnishing security. The Supreme Court held that the Arbitration Act mandates equal treatment of all parties, including government. The phrase 'having due regard to' CPC provisions in the Act is directory, not mandatory. The archaic rule favouring government has no place in modern democracy. The Court retains discretion to impose conditions such as deposit, even for government parties. The unconditional stay was set aside and the execution order restored.
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