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Judgment
In this application under section 34 of the Arbitration and Conciliation Act, 1996, (in short, “the Act of 1996â€), the claimant in the arbitral
proceeding has prayed for setting aside of the award dated February 27, 2018 passed by the sole arbitrator. By the impugned award, the learned sole
arbitrator allowed some of the claims and counter-claims of the respective parties and after making the necessary adjustments directed the present
petitioner, the claimant to pay Rs.37,29,000/- (Thirty Seven Lakhs Twenty Nine Thousand only) to the present respondent.
The petitioner has also prayed for stay of operation of the impugned award passed by the learned sole arbitrator. Although in the present case the
arbitral proceedings between the parties commenced before October 23, 2015, i.e. before the amending Act 3 of 2016 came into force but in view of
the decision of the Supreme Court in the case of Board of Control for Cricket of India vs. Kochi Cricket Pvt. Ltd. and Etc.; reported in 2018 (2) Arb
LR 170 (SC) the provisions incorporated under sub-section(3) of section 36 of the Act of 1996 are also applicable to the present case. Accordingly, in
order to obtain stay of operation of the impugned award the petitioner has to deposit the amount awarded by the sole arbitrator in favour of the present
respondent.
For the above reasons, subject to deposit of Rs.37,29,000/(Thirty Seven Lakhs Twenty Nine Thousand only) with the Registrar, Original Side of this
Court within July 12, 2018, the impugned award dated February 27, 2018 passed by the sole arbitrator shall remain stayed till the disposal of this
application.
It is, however, made clear that in the event of any default on the part of the petitioner to deposit the aforementioned amount with the Registrar,
Original Side of this Court within the time stipulated above, the respondent will be entitled to execute the arbitral award.
If the petitioner deposits the aforementioned amount with the Registrar, Original Side of this Court, the same shall be invested in a short term fixed
deposit maintained with United Bank of India, High Court Branch. The Registrar, Original Side shall keep the said deposit renewed, from time to time,
until further order.
If the present application does not comprise all the pleadings and recordings before the arbitrator, the respondent shall be entitled to disclose the
missing papers by filing an informal paper book within two weeks from date. Let this application appear, under the heading “Arbitration Motion
Adjourned (Section 34)â€, in the month of August, 2018.
Urgent certified website copies of this order, if applied for, be supplied to the petitioner upon compliance with all requisite formalities. All parties
concerned including the Registrar, Original Side and the Bank concerned shall act on a certified website copies of this order.