Pam Developments Private Ltd vs. State of West Bengal
2019 INSC 755; [2019] 9 S.C.R. 252
Coram: Hon’ble Justice R. F. Nariman & Hon’ble Justice Vineet Saran
Forum: Hon'ble Supreme Court of India
Case No.: Civil Appeal No. 5432 of 2019 with Civil Appeal No. 5433 of 2019
Date of Decision: July 12, 2019
Conclusion

Facts & Background:
- Pam Developments Private Ltd was the Appellant.
- The State of West Bengal was the Respondent.
- The Respondent invited tenders for the construction of "National Highway-II" in 2001, to which the Appellant and others applied. The Appellant's bid was accepted on 26th March 2001.
- The agreement was registered on 2nd April 2001, and the Appellant completed the work, after several extensions granted by the Respondent, on 28th February 2002.
- The Appellant raised claims for payment on 26th May 2003, but the claims were not paid, prompting the Appellant to file an application under Section 11(6) of the Arbitration Act to appoint an arbitrator.
- On 14th August 2003, the Calcutta High Court appointed Retired Justice Sujit Kumar Sinha as the arbitrator, and the award dated 21st January 2010 granted Rs. 2,87,11,553 with interest in favour of the Appellant.
- The Respondent challenged the award under Section 34 of the Arbitration Act before the Calcutta High Court, and the matter remained pending.
- Following the 2016 amendment to Section 36 of the Arbitration Act (effective retrospectively from 23rd October 2015), the Appellant filed an execution application based on the amended provision.
- On 18th September 2018, the Executing Court adjourned the matter, allowing the Appellant to pray for attachment of the amount in case the award was not stayed by the adjourned date.
- The Respondent filed a stay application under the amended Section 36(2) of the Arbitration Act before the Calcutta High Court, but the application was dismissed in default on 27th September 2018.
- On 3rd October 2018, the Executing Court attached Rs. 2.75 crores from the Respondent's credit with the Reserve Bank of India. The Court dismissed the Appellant's execution petition, relying on the unconditional stay granted by the Calcutta High Court on 5th September 2018.
- The Respondent filed a fresh application for stay of the award on 13th December 2018, relying on Order XXVII Rule 8A, CPC, which resulted in an unconditional stay of the award.
- The Respondent did not file an application to recall the order dated 27 September 2018, which dismissed the stay application in default.
- The Appellant filed the present appeal challenging the unconditional stay granted by the High Court on 13th December 2018.
Main Issue:
- Whether Section 36 of the Arbitration & Conciliation Act, 1996 provides for any special treatment to the Government when considering a stay application under Section 34 of the Arbitration & Conciliation Act, 1996?
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