- (1.) This is an application under Section 36(2) of The Arbitration and Conciliation Act, 1996 for stay of an Award dated 16th November, 2020 passed by an Arbitral Tribunal comprising of three Arbitrators. By the said Award, the petitioner before this Court, who was the respondent in the arbitration, was directed to pay a sum of Rs.5,74,17,156.00 (rupees five crores seventy four lakhs seventeen thousand one hundred and fifty six) to the respondent before this Court within 60 days of publication of the Award, in default of which the awarded sum would carry a post award interest @ 8 % with effect from the date of Award till the date of actual payment.
(2.) Learned counsel appearing for the petitioner/award-debtor submits that Section 36(3) of the Act read with the proviso imparts considerable discretion of a Court in the matter of deciding whether security at all should be furnished by the applicant or not. Counsel submits that since the petitioner is a Government undertaking and the contract is continuing between the parties, the petitioner may not be called upon to furnish security at all in the circumstances. Counsel also seeks a concession on the amount to be put in as security, if required by this Court, having regard to the fact that the arguments for stay of the Award under Section 34 of the Act had already commenced.
(3.) Learned counsel appearing for the respondent/award-holder explains the reasons for the direction on the petitioner to put in the awarded amount.;