In Brief
PAM Developments, a contractor, won an arbitration award of Rs. 2.87 crores against the State of West Bengal for a highway repair contract. When the State challenged the award under Section 34 of the Arbitration Act, the High Court granted unconditional stay of enforcement. The Supreme Court held that while courts may consider CPC provisions as guidance when granting stay, the phrase 'having due regard to' is merely directory, not mandatory. The Court rejected the claim that Order XXVII Rule 8A of the CPC—which exempts Government from furnishing security—grants unconditional stay rights. Section 18 of the Arbitration Act mandates equal treatment of parties, including Government. Thus, stay may be granted only subject to conditions (like deposit of decretal amount), not unconditionally. The Court allowed the appeal and restored the lower court's attachment order."
The lawyer headnote and full judgment text are available to registered users.