Mohammad Rafiq, J. - (1.) This appeal has been preferred by Jaipur Municipal Corporation through the Chief Executive Officer, Jaipur and Mayor (hereafter the Objector) assailing the order dated 17.8.2018 passed by the Commercial Court No.1, Jaipur in the course of proceedings under Section 34 of the Indian Arbitration and Conciliation Act, 1996 (Act of 1996) against the award dated 18.7.2016 passed by the Arbitrator. The Arbitrator by his award held the claimant entitled to a sum of Rs. 4,66,40,116/- with interest @ 12% per annum effective the date of the award.
(2.) The objections under Section 34 of the Act of 1996 against the award dated 18.7.2016 originally filed in the Court of District and Sessions Judge, Jaipur Metropolitan, Jaipur, were transferred to the Court of Additional District Judge No.1, Jaipur Metropolitan City, Jaipur which Court after hearing the application of the appellants by order dated 14.2017 held that the respondent was not entitled to execute the award. The respondent then filed a writ petition being S.B. Civil Writ Petition No.3297/2017 against the order aforesaid, which was dismissed by this Court. The matter was thereafter taken to the Supreme Court by the respondent. The Supreme Court vide order dated 15.5.2018 set aside both the orders of the Commercial Court/Additional DistrictSessions Judge, Metropolitan and that of this Court, in view of the judgement of Board of Control for Cricket in India v. Kochi Cricket Pvt. Ltd. etc. reported in (2018) 4 SCALE 502 and directed the court below to hear the arguments on the application under section 34 as also on the stay application within four months.
(3.) It may be noted herein that the Supreme Court in Kochi Cricket Pvt. Ltd, supra has taken the view that there would be no automatic stay on the execution of the award of by mere filing objections even in cases arising out of disputes prior to the Arbitration and Conciliation (Amendment) Act, 2015, which came into force with effect from 210.2015. In the meantime, Commercial Courts have been established in the State of Rajasthan and the present case has been transferred to Commercial Court No.1, Jaipur. The learned Commercial Court while hearing the application filed by the petitioner/objector has by the impugned judgement passed a conditional order of stay namely; that the operation of the award dated 18.7.2016 would remain stayed till disposal of the objections, if the objector Jaipur Nagar Nigam deposited 25% amount of the award in the Court or furnished a bank draft of 25% of the award amount to the claimant within 15 days against a bank guarantee as security all subject to the outcome of the objection petition. The Court below further directed that if the objector did not comply with its interim order, the award in issue could be executed. In taking that view, the Commercial Court has relied on the judgement of the Supreme Court in Malwa Strip Pvt. Ltd. v. M/s. Jyoti Ltd.-AIR 2009 SC page 1581 and Kayamuddin Shamsuddin Khan v. SBI-(1998) 8 SCC 676.;