challenge is made under Section
3
34 , there is an ‘automatic-stay’ of such awards under the Arbitration
Act, 1996 .
4. The Petitioners are then ... been construed by judgments of this Court as granting an
‘automatic-stay’ the moment a Section 34 application is filed within
time. According
Hindustan Construction Company v UOI (‘HCC Case’), which did away with automatic stays. The petitioners (infrastructure companies) approached the Court, pointing that they were being ... stay also results in payments already made under the amended Section 36 to award-creditors in a situation of no-stay or conditional-stay
submits that the appellant was working under the
automatic stay regime in view of the amended Section 36 of the Act
of 1996.
6. Relying ... learned advocate appearing for the appellant submits that the
doctrine of automatic stay was acknowledged and implemented
both by the Supreme Court and by various
would be applicable, and that, therefore, there would be
an automatic stay of the awards until the Section 34
proceedings had been decided. The Chamber ... substantive in nature, in that, in place of an
automatic stay of the award under the old regime, Order
LXI, Rule
Securitisation Act should not be construed as an automatic stay as held by a Division Bench of this Court in M/s.Ramco Super Leathers ... which would indicate that the Legislature intended that there would be automatic stay of proceedings under Section 13(4) on filing an application under Section
Page 2 of 30
petitioners would have the right of an automatic stay on the filing of the
petitions under Section 34 of the said ... would apply and, therefore,
there would be no question of any automatic stay and that it was well
within the powers of the learned single
There also
seemed to emerge a position that there is an automatic stay of
proceedings under Section 13 (4) on filing ... which would indicate
that the legislature intended that there would be automatic stay of the
proceedings under Section 13(4) on filing of an application
that the mere
filing of the challenge petition results in an automatic stay of the
award. Hence the Chamber Summonses for dismissal of the
execution ... submission is that, in
addition to the case on 'automatic stay', the execution application is
itself not maintainable because the award
that the mere
filing of the challenge petition results in an automatic stay of the
award. Hence the Chamber Summonses for dismissal of the
execution ... submission is that, in
addition to the case on 'automatic stay', the execution application is
itself not maintainable because the award
expired and therefore, on such application
being made within time, an automatic-stay ensues, is to read
something into Section 36 which is not there ... state the law correctly. Thus, it is clear that the
automatic-stay of an award, as laid down by these decisions, is
incorrect. The resultant
