As per case facts, a Concession Agreement led to an Arbitral Award favoring the respondent, directing appellant Municipal Corporations to pay significant amounts. Appellants filed objections under Section 34 of ...
FAO-CARB-9-2024 (O&M) 1
FAO-CARB-10-2024 (O&M)
IN THE HIGH COURT OF PUNJAB & HARYANA AT
CHANDIGARH
Reserved on: 27.08.2025
Pronounced on: 09.12.2025
Uploaded on:09.12.2025
Whether only operative part of the judgment is
pronounced or the full Judgment is pronounced. full
J udgment
1. FAO-CARB-9-2024 (O&M)
MUNICIPAL CORPORATION, JALANDHAR AND ANOTHER
... APPELLANTS
Versus
M/S. JITF URBAN WASTE MANAGEMENT (JALANDHAR)
LTD. AND OTHERS.
... RESPONDENTS
2. FAO-CARB-10-2024 (O&M)
MUNICIPAL CORPORATION, MOGA AND ANOTHER
... APPELLANTS
Versus
M/S. JITF URBAN WASTE MANAGEMENT (JALANDHAR)
LTD. AND OTHERS.
... RESPONDENTS
CORAM:- HON'BLE MR. JUSTICE SHEEL NAGU, CHIEF JUSTIC E
HON'BLE MR. JUSTICE SANJIV BERRY
Present:- Dr. Anmol Rattan Sidhu, Sr. Advocate with
Ms. Mandeep Kaur, Advocate;
Mr. Kamal Gupta, Advocate and
Ms. Aastha Goyal, Advocate
for the applicants-appellants.
Mr. Anand Chibber, Sr. Advocate with
Mr. Aditya Sen, Advocate;
Mr. Rahul Saraswat, Advocate,
Ms. Ateevraj Sandhu, Advocate and
Mr. Lalit Thakur, Advocate for the respondents.
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*****
SANJIV BERRY, J.
1. The appellants herein i.e. Municipal Corporation Moga as well
as Municipal Corporation Jalandhar have preferred the present appeals
against the impugned orders dated 08.01.2024 passed by learned Additional
District Judge, Chandigarh exercising the power of Commercial Court
whereby the objections raised by the appellants against the Arbitral Award
dated 15.01.2022 were dismissed in case ARB No. 497 of 2022 and ARB 496
of 2022 which have been challenged before this Court in the present appeals.
1.1 Since the issue involved is same in both the appeals, as such,
same are taken up together for disposal.
2. The facts of the case in nutshell are that a Concession Agreement
dated 02.12.2011 (Annexure A-1) was executed between the parties for
implementation of Integrated Municipal Solid Waste Management Project in
Ferozepur Cluster as well as in Jalandhar Cluster. Following a dispute arising
in implementation of the agreement, the matter was referred to arbitration and
an Arbitral Award dated 15.01.2022 was passed in favour of respondent No.1
thereby directing the appellant Municipal Corporations to pay an amount of
₹ ₹92.29 crores (in case of municipal corporation Moga) and 204.44 crores
(in case of Municipal Corporation Jalandhar) along with interest from the
date of award.
3. Appellants filed objections under Section 34 of the Arbitration
and Conciliation Act, 1996 (hereinafter referred to as “the Act”) along with
application under Section 36(2) and 36(3) of the Act seeking unconditional
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stay on the operation/execution of the Arbitral Award. The learned
Commercial Court dealing with the matter passed order dated 26.05.2022
(Annexure A-9) granting unconditional stay in favour of the appellant till
26.07.2022.
3.1 Aggrieved by this order, respondent No.1 preferred Civil
Revision petition before this Court vide CR-2247-2022 and CR-2248-2022
which were decided on 25.07.2022 (Annexure A-10) directing the learned
Commercial Court not to automatically extend the interim stay granted vide
order dated 26.05.2022 but would hear the parties and thereafter pass the
appropriate orders regarding the interim relief in accordance with law.
4. However, the learned commercial Court again passed the order
dated 23.08.2022 unconditionally staying the operation of the Arbitral Award
after hearing parties vide (Annexure A-11) which again was challenged by
filing Revision Petition by respondent No.1 and vide order dated 22.12.2022
(Annexure A-12), the High Court quashed the order (Annexure A-11) and
remanded the matter back to the Commercial Court to revisit the issue and
pass appropriate order in accordance with law.
5. Thereafter in the light of the order dated 22.12.2022 (Annexure
A-12) passed by this Court, the learned Commercial Court after hearing the
arguments passed the order dated 23.08.2023 (Annexure A-14) staying the
operation of the impugned Arbitral Award dated 15.01.2022 subject to the
condition of the appellants depositing 100% of the Award amount in the
shape of FDR in the Court on or before the next date of hearing.
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6. Appellants approached this Court by filing CR No. 6627-2023
against the order dated 23.08.2023 (Annexure A-14) and in the meanwhile
also filed an application dated 16.11.2023 before the Commercial Court
seeking extension of time in the light of the pendency of aforesaid Civil
Revision, on the basis whereof the learned Commercial Court extended the
time till 08.01.2024 for depositing the amount, vide order dated 18.11.2023
(Annexure A-16).
6.1 Subsequently, on 14.12.2023 the appellant withdrew the
Civil Revision with liberty to challenge the order dated 18.11.2023
(Annexure A-16) as is evident from the order dated 14.12.2023 (Annexure A-
17). Since the appellants failed to deposit the amount in terms of the
conditional stay order and the compliance of the order of the Court was not
made, the learned Commercial Court dismissed the objection petition vide
impugned order dated 08.01.2024 which has been challenged in the instant
appeals.
7. The arguments advanced by learned Senior Counsels
representing the parties have been heard and the record perused with their
assistance.
8. It is inter alia contended by learned Senior counsel representing
the appellants that the impugned order passed by the learned Commercial
Court qua the conditional stay of execution, subject to deposit of 100% of the
amount of the Arbitral Award with interest and the consequent order dated
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08.01.2024 dismissing the objection petition on the failure of the appellants
to comply with the conditional deposit order are not sustainable in the eyes of
law. He contends that the appellants happen to be the Municipalities
constituted under Article 243-Q of the Constitution of India and the Punjab
Municipal Corporation Act, 1976 and hence, statutory corporation, as such
the imposition of condition to deposit 100% Arbitral Award as a condition
precedent for staying the execution proceedings by the learned Commercial
Court is not sustainable since it failed to differentiate between a private party
and a statutory corporation. It is further submitted that the impugned order
dated 08.01.2024 is not sustainable in the eyes of law having been passed in
haste without deciding the objections preferred by the appellants on merits,
but dismissing simply on the ground that the compliance of the order dated
23.08.2023 (Annexure A-14) had not been made by the appellants qua
deposit of 100% of amount. In this context, he has referred to the judgment of
Delhi High Court passed in Sepco Electric Power Construction Corporation
vs. M/s Power Mech Projects limited; Neutral Citation No. 2023:DHC:
5996-DB dated 21.08.2023 and prayed for acceptance of the appeals.
9. Per contra, learned Senior counsel representing the respondent
No.1 has assailed these arguments by submitting that Arbitral Award dated
15.01.2022 was passed in accordance with law against the appellants and the
appellants were directed to pay an amount of ₹92.29 crores (in case of
municipal corporation Moga) and ₹204.44 crores (in case of Municipal
Corporation Jalandhar) along with interest from the date of award. He
submits that appellants instead of making payment to respondent No.1
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honoring the Arbitral Award, had preferred the objection petitions wherein
vide order dated 23.08.2023 (Annexure A-14), learned Commercial Court
had stayed the operation of the impugned Arbitral Award subject to deposit of
100% of the Arbitral Award in the shape of FDR in the Court. He contends
that the appellants by moving different applications before the concerned
Court as well as by filing Revision Petition got extended the time to deposit
the amount, in compliance of the order on different dates till 08.01.2024 vide
order dated 18.11.2023 (Annexure A-16) but again defaulted to comply with
the directions to deposit by the stipulated date leaving no other option for the
concerned court but to dismiss the objection petition of the appellants vide
the impugned order dated 08.01.2024. He submits that the learned
Commercial Court had acted in accordance with law and had not committed
any infirmity in passing the impugned order. He contends that while
considering the application for grant of stay in the case of an Arbitral Award
provision of Civil Procedure Code are applied to the same as if a Money
Decree and as per Order 41 Rule 5 CPC, the security is required to be
deposited for staying of the money decree which the learned Commercial
Court had rightly observed, but the appellant failed to deposit even a single
penny despite taking numerous opportunities. He contends that the appellant
being statutory corporation does not have any preferential status as no
exceptional treatment is to be given to the Government while considering the
application under Section 36 of the Act, filed by the Government in the
proceedings under Section 34 of the Act. In this regard he has referred to
judgment passed by Hon’ble Apex Court in International Seaport Dredging
Pvt. Ltd. vs. Kamarajar Port Limited 2024 SCC Online SC 3112. Learned
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Senior counsel had assailed the reliance placed by the appellants on judgment
in Sepco’s (supra) by contending that in the case of Sepco, the appellant had
fulfilled the condition of deposit during the pendency of the appeal which is
not so in the present case, therefore, the same is distinguishable from the
facts of the present case as in the present case, the appellants had not
deposited a single penny till date. Moreover, the conduct of the appellant in
the present case has been mala fide throughout as every order made by the
Commercial Court has been challenged before the High Court seeking
extension of time although no relief was granted and the appellants had tried
their best to prevent respondent No.1 from enjoying the fruits of the Arbitral
award till date, as such, prayed for dismissal of the appeals.
10. After considering the rival contentions it transpires that so far as
the factual position is concerned, it is not disputed that there had been a
Concession Agreement executed between the parties for implementation of
Integrated Municipal Solid Waste Management Project for their respective
municipality clusters and thereafter on the dispute having been arisen, the
matter was referred to Arbitrator which passed the Arbitral Award dated
15.01.2022 directing the appellants to pay an amount of ₹92.29 crores (in
case of municipal corporation Moga) and ₹204.44 crores (in case of
Municipal Corporation Jalandhar) respectively along with interest. The
appellants preferred the objection petitions before the Commercial Court
under Section 34 of the Act besides moving applications under Section 36(2)
and 36(3) of the Act seeking unconditional stay on the operation of the
award wherein initially the unconditional stay was granted vide order dated
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26.05.2022 (Annexure A-9) but later in the light of the order passed by the
High Court in revision petition vide (Annexure A-12), the learned Court
passed the order dated 23.08.2023 (Annexure A-14) staying the Arbitral
Award subject to deposit of 100% of the amount in the shape of the FDR in
the Court. It is evident from the record that despite taking many opportunities
the appellants failed to deposit even a single penny out of the Arbitral Award
in the Court and on non-compliance of its directions, the impugned order
dated 08.01.2024 was passed.
11. Before proceedings further, it would be apt to have a glance on
the relevant provisions contained in the Arbitration and Conciliation Act
1996 providing for recourse against the Arbitral Award, which reads as
under:-
“34. Application for setting aside arbitral award—
(1) Recourse to a Court against an arbitral award may be made
only by an application for setting aside such award in
accordance with sub-section (2) and sub-section (3).
(2) An arbitral award may be set aside by the Court only if—
(a) the party making the application furnishes proof that—
(i) a party was under some incapacity, or
(ii) the arbitration agreement is not valid under
the law to which the parties have subjected it or,
failing any indication thereon, under the law for the
time being in force; or
(iii) the party making the application was not
given proper notice of the appointment of an
arbitrator or of the arbitral proceedings or was
otherwise unable to present his case; or
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(iv) the arbitral award deals with a dispute not
contemplated by or not falling within the terms of
the submission to arbitration, or it contains
decisions on matters beyond the scope of the
submission to arbitration: Provided that, if the
decisions on matters submitted to arbitration can be
separated from those not so submitted, only that
part of the arbitral award which contains decisions
on matters not submitted to arbitration may be set
aside; or
(v) the composition of the arbitral tribunal or the
arbitral procedure was not in accordance with the
agreement of the parties, unless such agreement
was in conflict with a provision of this Part from
which the parties cannot derogate, or, failing such
agreement, was not in accordance with this Part; or
(b) the Court finds that—
(i) the subject-matter of the dispute is not
capable of settlement by arbitration under the law
for the time being in force, or
(ii) the arbitral award is in conflict with the
public policy of India.
[Explanation 1.— For the avoidance of any doubt, it is
clarified that an award is in conflict with the public policy of
India, only if,—
(i) the making of the award was induced or
affected by fraud or corruption or was in violation
of section 75 or section 81; or
(ii) it is in contravention with the fundamental
policy of Indian law; or
(iii) it is in conflict with the most basic notions of
morality or justice.
Explanation 2.— For the avoidance of doubt, the test as to
whether there is a contravention with the fundamental policy of
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Indian law shall not entail a review on the merits of the
dispute.]
[(2A) An arbitral award arising out of arbitrations other than
international commercial arbitrations, may also be set aside by
the Court, if the Court finds that the award is vitiated by patent
illegality appearing on the face of the award:’
Provided that an award shall not be set aside merely on
the ground of an erroneous application of the law or by
reappreciation of evidence.]
(3) An application for setting aside may not be made after
three months have elapsed from the date on which the party
making that application had received the arbitral award or, if a
request had been made under section 33, from the date on
which that request had been disposed of by the arbitral
tribunal:
Provided that if the Court is satisfied that the applicant
was prevented by sufficient cause from making the application
within the said period of three months it may entertain the
application within a further period of thirty days, but not
thereafter.
(4) On receipt of an application under sub-section (1), the
Court may, where it is appropriate and it is so requested by a
party, adjourn the proceedings for a period of time determined
by it in order to give the arbitral tribunal an opportunity to
resume the arbitral proceedings or to take such other action as
in the opinion of arbitral tribunal will eliminate the grounds for
setting aside the arbitral award.
(5) An application under this section shall be filed by a party
only after issuing a prior notice to the other party and such
application shall be accompanied by an affidavit by the
applicant endorsing compliance with the said requirement.
(6) An application under this section shall be disposed of
expeditiously, and in any event, within a period of one year
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from the date on which the notice referred to in sub-section (5)
is served upon the other party.]
CHAPTER VIII
Finality and enforcement of arbitral awards
35. Finality of arbitral awards.— Subject to this Part an
arbitral award shall be final and binding on the parties and
persons claiming under them respectively.
36. Enforcement.— (1) Where the time for making an
application to set aside the arbitral award under section 34 has
expired, then, subject to the provisions of sub-section (2), such
award shall be enforced in accordance with the provisions of
the Code of Civil Procedure, 1908 (5 of 1908), in the same
manner as if it were a decree of the court.
(2) Where an application to set aside the arbitral award has
been filed in the Court under section 34, the filing of such an
application shall not by itself render that award unenforceable,
unless the Court grants an order of stay of the operation of the
said arbitral award in accordance with the provisions of sub-
section (3), on a separate application made for that purpose.
(3) Upon filing of an application under sub-section (2) for
stay of the operation of the arbitral award, the Court may,
subject to such conditions as it may deem fit, grant stay of the
operation of such award for reasons to be recorded in writing:
Provided that the Court shall, while considering the
application for grant of stay in the case of an arbitral award for
payment of money, have due regard to the provisions for grant
of stay of a money decree under the provisions of the Code of
Civil Procedure, 1908 (5 of 1908).]
[Provided further that where the Court is satisfied that a
prima facie case is made out that,-
(a) the arbitration agreement for contract which is the basis of
the award;
or
(b) the making of the award,
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was induced or effected by fraud or corruption, it shall stay the
award unconditionally pending disposal of the challenge under
Section 34 to the award.
Explanation.- for the removal of doubts, it is hereby clarified
that the above proceedings, irrespective of whether the arbitral
or court proceedings were commenced prior to or after the
commencement of the Arbitration and Conciliation
(Amendment) Act, 2015 (3 of 2016) ”
12. A bare perusal of the aforesaid provisions makes it abundantly
clear that on an application moved by the appellants, the operation of the
award may be stayed subject to such conditions as the Court may deem fit.
However, it is provided that in considering such application for stay of
execution of the award, the Court shall have due regard to the provisions of
Order 41 Rule 5 of the Civil Procedure Code 1908 which deals with the
same. Important Proviso is added to Section 36(3) of the Act to the extent
that if the Court prima facie is satisfied that the arbitration award was
induced or effected by fraud or corruption then in such event Court may grant
unconditional stay of award pending disposal of the application under
Section 34 of the Act.
13. In the present case, it is admittedly not the case of the appellant
that the arbitration award was in any manner induced or effected by fraud or
corruption which could bring the same within the ambit of the Provision of
Section 36(3) of the Act, so as to entitle the appellants for the grant of
unconditional stay. The execution of the arbitral award being done in the
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same manner as that of execution of money decree under Order 41 Rule 5
CPC.
14. So far as the contention of the learned counsel for the appellants
that the appellants being statutory bodies, the Court should have granted
unconditional stay execution proceedings is concerned, no doubt the
appellants are statutory body but the fact remains that the arbitration award
being a money decree the provisions of CPC especially order 41 Rule 5 CPC
applies with full force.
15. In this regard, the Hon’ble Apex Court has held in PAM
Developments Private Limited v State of West Bengal, 2019 (8) SCC 112 as
under:-
xxx xxx xxx
“20. In our view, in the present context, the phrase used is
“having regard to” the provisions of CPC and not “in
accordance with” the provisions of CPC. In the latter case, it
would have been mandatory, but in the form as mentioned in
Rule 36(3) of the Arbitration Act, it would only be directory or
as a guiding factor. Mere reference to CPC in the said Section 36
cannot be construed in such a manner that it takes away the
power conferred in the main statute (i.e. the Arbitration Act)
itself. It is to be taken as a general guideline, which will not
make the main provision of the Arbitration Act inapplicable. The
provisions of CPC are to be followed as a guidance, whereas the
provisions of the Arbitration Act are essentially to be first
applied. Since, the Arbitration Act is a self-contained Act, the
provisions of CPC will apply only insofar as the same are not
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inconsistent with the spirit and provisions of the Arbitration
Act.”
“26. Arbitration proceedings are essentially alternate
dispute redressal system meant for early/quick resolution of
disputes and in case a money decree — award as passed by the
arbitrator against the Government is allowed to be
automatically stayed, the very purpose of quick resolution of
dispute through arbitration would be defeated as the decree-
holder would be fully deprived of the fruits of the award on mere
filing of objection under Section 34 of the Arbitration Act. The
Arbitration Act is a special Act which provides for quick
resolution of disputes between the parties and Section 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
under Section 34 of the Arbitration Act. As we have already
mentioned above, the reference to CPC in Section 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.
28. Section 36 of the Arbitration Act also does not
provide for any special treatment to the Government while
dealing with grant of stay in an application under proceedings of
Section 34 of the Arbitration Act. Keeping the aforesaid in
consideration and also the provisions of Section 18 providing for
equal treatment of parties, it would, in our view, make it clear
that there is no exceptional treatment to be given to the
Government while considering the application for stay under
Section 36 filed by the Government in proceedings under Section
34 of the Arbitration Act.”
xxx xxx xxx
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16. Further it has been observed by the Hon’ble Apex Court in
International Seaport’s case (supra) that the Government entities must be
treated in a similar fashion to private parties insofar as proceedings under the
Arbitration Act are concerned. The relevant para of the judgment reads as
under:-
“ 15. Bearing in mind the above principles, we are of the
view that the High Court was in error in not even prima facie
considering the fact that apart from the issue of cess, there was
an arbitral award in favour of the appellant in regard to other
claims as well. Further, the High Court ought not to have based
its decision on the condition for the grant of stay on the status of
the respondent as a statutory authority. The Arbitration Act is a
self-contained code – it does not distinguish between
governmental and private entities. Hence, the decision of the
Court cannot be influenced by the position of the party before it
and whether it is a fly-by-night operator. Moreover, an
assessment as to whether a party is reliable or trustworthy is
subjective. Many private entities, too, may rely on the size of
their undertaking, its success, public image, or other factors to
argue that they are not fly-by-night operators. In the absence of
any provision of law in this regard, it would be inappropriate for
courts to apply this standard while adjudicating the conditions
upon which a stay of an award may be granted. Similarly, the
form of security required to be furnished should not depend on
whether a party is a statutory or other governmental body or a
private entity. Governmental entities must be treated in a
similar fashion to private parties insofar as proceedings under
the Arbitration Act are concerned, except where otherwise
indicated by law. This is because the parties have entered into
commercial transactions with full awareness of the implications
of compliance and non-compliance with the concerned contracts
and the consequences which will visit them in law. Hence, the
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argument that the High Court was correct in directing the
respondent to furnish bank guarantees in relation to the amount
awarded because it is a statutory body is rejected.”
17. In the light of the categorical decision of Hon’ble Apex Court
on the subject, there is no special treatment under Section 36 of the Act to the
Government while dealing with grant of stay in an application in proceedings
under Section 34 of the Act, no infirmity could be observed in the learned
Commercial Court order granting stay of the execution of the Arbitral Award
subject to 100% of the deposit there of and no special treatment can be
granted to the appellants being the statutory body in any manner.
18. Thus, in the light of the above, it is observed that there was
nothing wrong in the orders passed by the learned Commercial Court in
staying the execution of the arbitral award subject to condition of deposit of
100% of the award amount in the shape of FDR in the name of the Court.
19. Further, it is evident from the record that this order of
conditional stay subject to deposit of 100% of award amount was made by
the learned Commercial Court on 23.08.2023 (Annexure A-14) by passing
detailed order after hearing the learned counsel for the parties against which
the appellant had preferred Revision Petition in the High Court vide CR
6627-2023 and in the meanwhile filed application (Annexure A-15) before
the District Court seeking extension of time in the light of pendency of Civil
Revision petition and vide order (Annexure A-16) dated 18.11.2023 the
appellants were granted time till 08.01.2024 to deposit the requisite award
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amount in the shape of FDR in Court in compliance of the order dated
23.08.2023, in the meanwhile on 14.12.2023 the appellant withdrew the Civil
Revision Petition with liberty to challenge the order dated 18.11.2023
(Annexure A-16) as is evident from order dated 14.12.2023 (Annexure A-17)
passed by this Court. Admittedly the appellant never challenged the order
dated 18.11.2023 again. The aforesaid conduct of the appellants itself speak
volumes that the appellants had tried their level best by successive
applications at different forums seeking extension of time and once the time
was granted by the concerned Court due to pendency of Civil Revision
before the High Court, subsequently the appellants had withdrawn the
petition from High Court with liberty to challenge the order dated 18.11.2023
which was never challenged by them. It is evident from such conduct of the
appellant that they tried their level best to prevent the respondent No. 1 from
enjoying the fruits of arbitral award.
20. The above said factual position speak volumes about the
contumacious conduct of the appellants in intentionally avoiding the
execution of Award and in the backdrop thereof the reliance placed by the
appellants on the judgment referred in Sepco’s (supra) is also misplaced and
in this regard para 29 and 30 of the judgment are reproduced here as under:-
“29. It is relevant to note that the opening sentence of Section
34(2) of the A&C Act indicates that the arbitral award ‘may’ be
set aside by the Court if the grounds are satisfied. The use of the
word ‘may’ indicate that there is some discretion of the court in
the matter of setting aside an award. Thus, the appellant’s
contention that an application under Section 34 of the A&C
Act must be determined on merits in all cases and cannot be
rejected even if the conduct of the party applying for setting
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aside the arbitral award is contumacious and it has acted in
wilful defiance of the orders of this Court, is unmerited.
30. However, we are of the view that it is not necessary to
examine this question in this case as the appellant has
deposited the entire awarded amount and has also furnished
bank guarantee for 50% of the interest due (as calculated up to
31.05.2023). By the order dated 21.11.2022, the Supreme Court
had directed that the application “be decided in accordance with
law and on its own merits, however, subject to compliance of
Section 36 of the Arbitration and Conciliation Act 1996 and
order of this Court.”
21. A perusal of the judgment shows that in fact after the judgment
passed by learned Single Judge of Delhi High Court (Original Jurisdiction),
the appellant had deposited the entire awarded amount and also furnished the
bank guarantee of the 50% of the interest due, which is unfortunately not so
in the present case, as instead of depositing of the award amount as directed
by the learned Commercial Court, the appellants avoided the payment thereof
on one pretext or the other and even despite seeking extension of time for its
deposit had chosen not to comply with the specific directions of the Court in
that regard and thereby showing categorical contumacious conduct on their
part. Even it is worth mentioning that the Division Bench while dealing with
Sepco’s case had categorically observed there that the contentions raised by
the appellants regarding the application u/s 34 of the Act must be determined
on the merits of the case and cannot be rejected even if the conduct of the
party applying for setting aside the arbitral award is contumacious and acted
in willful defiance of the orders of the Court is “unmerited’. The conduct of
the appellants herein too being contumacious considering the above
FAO-CARB-9-2024 (O&M) 19
FAO-CARB-10-2024 (O&M)
mentioned facts and circumstances in not complying with the directions of
the Court qua deposit of the award amount, the reliance placed by the
appellants on Sepco’s case (supra) is hopelessly misplaced.
22. In the light of the above discussions, no infirmity or illegality
whatsoever could be observed in the impugned judgment/final order dated
08.01.2024 passed by learned Additional District Judge, Chandigarh
exercising the power of Commercial Court, so as to call for any interference
therein.
23. As a consequent, finding no merits therein, both the appeals
stand dismissed.
24. All the pending miscellaneous applications, if any, are also
disposed of.
(SANJIV BERRY) (SHEEL NAGU)
JUDGE CHIEF JUSTICE
Dated:09.12.2025
Gyan
i) Whether speaking/reasoned? Yes/No
ii) Whether reportable? Yes/No
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