Section 36(3) Arbitration Act 1996 (post-2015 amendment) provides for COURT to grant STAY on award enforcement:
Answer & Solution
Correct answer: C.
1. Section 36(3) Arbitration and Conciliation Act 1996 (post-2015 amendment) provides for STAY on enforcement of arbitral award:
2. (1) Upon a SEPARATE APPLICATION made under Section 36(2);
3. (2) The COURT may grant STAY of operation of the award subject to such CONDITIONS as it may deem fit.
4. (3) FOR MONEY AWARDS:
5. (a) The court shall have due regard to the provisions for grant of stay of money DECREE under the provisions of CPC 1908;
6. (b) Court may require the applicant to DEPOSIT THE AWARDED AMOUNT or PROVIDE SECURITY.
7. (4) UNCONDITIONAL STAY may be granted if the court is PRIMA FACIE SATISFIED that the making of the award was INDUCED OR AFFECTED BY FRAUD OR CORRUPTION.
8. Hindustan Construction Co. v. UoI (2019) 17 SCC 324 — Supreme Court emphasised that PERFUNCTORY STAYS are improper; courts must apply judicial mind.
9. 2019 Amendment introduced Section 36(3) proviso requiring deposit/security in MOST cases.
10. Hence option B is correct.
_Source: Arbitration and Conciliation Act 1996 (Bare Act) + Mediation Act 2023 — Arbitration and Conciliation Act 1996, Section 36(3); Hindustan Construction Co. v UoI (2019) 17 SCC 324_
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