The Court : In this application under Section 34 of the Arbitration & Conciliation Act, 1996, as amended by Act No.3 of 2016 (in short, ""the Act of
1996"") the petitioners being the partnership firm and partners have challenged the consolidated award dated August 13, 2018 passed by the sole
Arbitrator. It appears that there is a day’s delay of filing the present application beyond the period of 90 days from the date of receipt of the
arbitral award. Accordingly, the application for setting aside of the impugned award is admitted.
By the impugned award the Arbitrator has directed the present petitioners to pay Rs.22,69,050/-, Rs.11,84,077/- and Rs.10,84,047/- to the respondent
nos.1, 2 and 3 respectively, the retired partners of the petitioner no.1 firm together with interest thereon at the rate of 12%, per annum and the
petitioners have prayed for stay of operation of the arbitral award.
As per the impugned award the total amount payable by the petitioners to the respondents is Rs.45,37,174/- together with interest at the rate of 12 per
cent per annum.
It appears that the claims of the present respondents, the claimants in the arbitral proceeding arose on account of their dues after retiring from the
petitioner no.1 firm and the Arbitrator has directed the petitioners, to pay the aforementioned amounts to the respective respondents as their
outstanding dues from the partnership firm.
In view of the Proviso to Sub-section(3) of Section 36 of the Act of 1996, in order to obtain stay of operation of the money award made by the
Arbitrator, the petitioner is required either to deposit the entire awarded amount or to secure the same before this Court.
Accordingly, subject to deposit of Rs.45,37,174/- with the learned Registrar, Original Side of this Court within December 14, 2018, the impugned
award dated August 13, 2018 shall remain stayed till the disposal of this application. There shall be an unconditional stay of operation of the arbitral
award till December 17, 2018.
In the event of any failure on the part of the petitioners to deposit the said amount of Rs.45,37,174/- within the time stipulated above, the respondents
shall be free to execute the impugned arbitral award, without any further reference to this Court.
Subject to furnishing bank guarantee to the satisfaction of the learned Registrar Original Side of this Court, each of the respondents would be entitled
to withdraw the respective amounts directed by the Arbitrator to be paid by each of them. Needless to mention that the respondents shall continue to
renew their bank guarantees in favour of the Registrar, Original Side of this Court untill disposal of this application.
Let this application appear in the list, under the heading “For Hearingâ€, in the monthly list of February, 2019. The appeal will be heard on the basis
of the documents already disclosed in this application.
