Report No. 176
(31) Section 36(1): (i) Section 36 as its stands now provides that the enforcement of the award will come to a stop upon the filing of an application under sub-section (1) of Section 34 to set aside the award. Parties are now filing such applications even though there is no substance whatsoever in such applications. Section 36 is therefore proposed to amended by designating the existing section as sub-section (1) and omitting the words which say that the award will not be enforced once an application is filed under sub-section (1) of Section 34.
(ii) Sub-section (2): This sub-section is being introduced to say that the mere filing of an application under sub-section (1) of Section 34 to set aside an award shall not amount to stay of the award unless the Court passes an order under the proposed sub-section (3).
(iii) Sub-section (3) to (5): These sub-sections are proposed to be introduced to enable the Court to stay the operation of the award subject to such conditions as it may deem fit, in the light of the limited grounds available under Section 34 and 34A. Under these sub-sections, the Court can pass orders against third parties or against property which is not the subject matter of arbitration, for the purpose of protecting the interests of the party in whose favour the award is passed.