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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
...the Arbitration Act, seeking an unconditional stay. After initial unconditional stays were quashed by the High Court, the Commercial Court granted a conditional stay requiring 100% deposit. Despite extensions, appellants failed to comply, leading to the dismissal of their objection petitions. The appeal to the High Court challenged this dismissal. The question arose whether the Commercial Court's conditional stay and subsequent dismissal for non-compliance were sustainable, especially for statutory bodies. Finally, the High Court held that the Arbitration Act provides no special treatment for governmental bodies, affirming the Commercial Court's conditional stay and dismissal due to the appellants' repeated non-compliance.
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