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Indian Supreme Court: no special treatment for government entities; Section 36 stay of enforcement requires 75% deposit of award including interest (International Seaport v Kamarajar Port)

Published on: 22 November 2024

Published by a LexisNexis Arbitration expert
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International Seaport Dredging Pvt Ltd v Kamarajar Port Ltd Civil Appeal No 12097 of 2024 arising out of SLP (C) No. 25369 of 2024] What are the practical implications of this case?

This ruling clarifies the principles that courts must apply when deciding whether, and on what terms, to stay an arbitral award under the Act. It confines judicial discretion to the boundaries set by statute. The 2015 Amendment abolished the earlier position where filing an application to set aside an award automatically stayed its execution. The purpose was to shield awards from baseless attacks and allow the award-holder to enjoy the fruits of the decision, with a standalone stay application being necessary. This judgment drives that aim further: the form of security required to obtain a stay of execution cannot be varied simply because the applicant is a government entity; courts have no discretion in that respect. Infamous as government entities are for assailing arbitral awards, regardless of merit, it is hoped this...

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