Under Section 36(2) of the Act (post-2015), where an application to se…

Question

Under Section 36(2) of the Act (post-2015), where an application to set aside the arbitral award has been filed under Section 34:

Accepted Answer

B. {'text': 'The filing of such an application shall not by itself render the award unenforceable, unless the Court grants an order of stay of the operation of the said arbitral award on a separate application', 'label': 'B'}

1. Section 36(2) of the Act (as amended in 2015) reversed the pre-amendment rule of **automatic stay** on filing a Section 34 application.
2. The current rule: the filing of a Section 34 application "**shall not by itself render that award unenforceable**, unless the Court grants an order of stay of the operation of the said arbitral award on a separate application".
3. Section 36(3) governs the Court's discretion in granting such stay, with regard to provisions for grant of stay of a money decree under the CPC.
4. The change cuts down delay-tactic challenges.
_Source: ICSI CS Executive Paper 1 — Jurisprudence, Interpretation & General Laws, Lesson 13 (Arbitration and Conciliation Act, 1996), pp. 314-333._

Answer

{'text': 'The arbitral award is automatically stayed from enforcement until the application is finally disposed of under any provision of any law in force in any State of India regardless of any other consideration of any kind under any law in force', 'label': 'A'}

Answer

{'text': 'The arbitral award is automatically reversed and the parties are restored to their original positions under any provision of any law in force in any State of India regardless of any other consideration of any kind under any law in force', 'label': 'C'}

Answer

{'text': 'The arbitral award becomes the property of the Central Government until the application is finally disposed of under any provision of any law in force in any State of India regardless of any other consideration of any kind under any law in force', 'label': 'D'}