- (1.) The Court: The Arbitration and Conciliation (Amendment) Ordinance 2015 was promulgated on 23rd October, 2015. This Ordinance was repealed by the Arbitration and Conciliation (Amendment) Act 2015, which received the assent of the President on 31st December, 2015 and was published in the Gazette of India on 1st January, 2016.
(2.) Under Section 36 of the Arbitration and Conciliation Act, 1996 before amendment, an award could not be enforced unless the time for making an application to set aside the award under Section 34 (maximum of 120 days from the date of receipt of the award) had expired without an application having been made or when such application was made and refused. Thus, during pendency of a setting aside application, the award could not be enforced. Section 19(2) of the amendment Act made the award enforceable after filing of the setting aside application unless the Court granted stay of the award. This could only be obtained on application. Furthermore, such stay could only be granted on certain terms and conditions. The proviso to Section 19 provided that by considering the grant of stay the Court would have due regard to inter alia Order 41(1)(3) and 41(5)(3)(c) of the Code of Civil Procedure. In other words, stay could be obtained on securing the awarded amount. It was not automatic on 'making' of a setting aside application.
(3.) The subject award was made and published on 30th July, 2015. This application to set aside the award was filed on 26th November, 2015. Mr. A.Ghosh, learned Advocate for the respondent, took an initial objection to admission of this application on the ground that the awarded sum had to be secured by the petitioner. Mr. S.Ghosh, learned Advocate for the petitioner took an adjournment to consider the legal point involved. He has come up with the answer today. ;