In Brief
The Supreme Court held that under the amended Section 36 of the Arbitration and Conciliation Act, 1996, a court may grant stay of an arbitral award but must impose such conditions as it deems fit. The phrase 'having due regard to' the Code of Civil Procedure is directory, not mandatory. The Court rejected the Government's argument that Order XXVII Rule 8A of CPC requires automatic unconditional stay. The Arbitration Act mandates equal treatment of all parties (Section 18) with no special provisions for Government. Even if Rule 8A exempts from furnishing security, courts retain power to direct deposit of the awarded amount as a condition for stay. The unconditional stay granted by the High Court was set aside and the award restored for enforcement.
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