NDLI: Pam Developments Private Ltd. Vs. State of West Bengal

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	1996 – Code of Civil Procedure vis-a-vis the provisions of Or. XXVII r. 8A of CPC Arbitration and Conciliation Act 1908 – Effect of s. 36 of the Arbitration Act
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Code of Civil Procedure, 1908 (5 of 1908) Arbitration and Conciliation Act, 1996 (26 of 1996)
Case(s) Referred	Referred Case 0 Referred Case 1
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Arbitration and Conciliation Act, 1996 – Code of Civil Procedure, 1908 – Effect of s. 36 of the Arbitration Act, vis-a-vis the provisions of Or. XXVII, r. 8A of CPC – Respondent-State invited tender relating to the work of ‘Special Repair Programme 2000- 2001 for different stretches of National Highway-II’ – The bid of appellant was accepted and an agreement was registered – The work under the agreement was completed – The appellant raised its claims and dues before the State – The claims of the appellant were not paid – Appellant filed an application u/s. 11(6) of the Act, 1996 – Arbitrator allowed claims of the appellant – Aggrieved, the Respondent-State filed application u/s.34 of the Act, 1996 before the High Court – Thereafter, appellant filed an execution application before the High Court – Executing Court by order dated 3.10.2018 attached the sum of Rs. 2.75 crores and clarified that in the event there was no stay of operation of the award, it was open to the appellant to pray for release of the said amount – In the meantime, the respondent filed stay application u/s. 36(2) of the Act, 1996 and order of the unconditional stay was passed relying on the provisions of Or. XXVII, r. 8A of CPC – Relying on the order of the unconditional stay, the Executing Court dismissed the execution petition – On appeal, held: The Arbitration Act is a special Act which provides for quick resolution of disputes between the parties and s.18 of the Act makes it clear that the parties shall be treated with equality – Once the Act mandates so, there cannot be any special treatment given to the Government as a party – As such, under the scheme of the Arbitration Act, no distinction is made nor any differential treatment is to be given to the Government, while considering an application for grant of stay of a money decree in proceedings u/s. 34 of the Arbitration Act – The reference to CPC in s.36 of the Arbitration Act is only to guide the Court as to what conditions can be imposed, and the same have to be consistent with the provisions of the Arbitration Act – Insofar Or. XXVII, r.8A of CPC is concerned, r.8A only provides exemption from furnishing security, which would not restrict the Court from directing deposit of the awarded amount and part thereof – Thus, order of the High Court granting unconditional stay of the arbitration award not sustainable in the eyes of the law – Accordingly, order dated 03.10.2018 of the Executing Court restored and as already directed, it is open for the appellant-award holder to pray for release of the attached amount.Code of Civil Procedure, 1908 – Or.XXVII, r.8A – Application of – Held: The archaic r. 8A of Order XXVII, CPC has no application or reference in the present times, even if it is assumed that the provisions of Or.XXVII, r.8A of CPC are to be applied, the same would only exempt the Government from furnishing security, whereas u/Or. XLI, r. 5 of CPC, the Court has the power to direct for full or part deposit and/or to furnish security of the decretal amount – r.8A only provides exemption from furnishing security, which would not restrict the Court from directing deposit of the awarded amount and part thereof.
Judge	Hon'ble Mr. Justice Vineet Saran
Neutral Citation	2019 INSC 755
Petitioner	Pam Developments Private Ltd.
Respondent	State Of West Bengal
SCR	[2019] 9 S.C.R. 252
Judgement Date	2019-07-12
Case Number	5432

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