Report No. 176
2.29.7 For section 36 of the principal Act, the following section shall be substituted namely :-
Substitution of section 36
23. For section 36 of the principal Act, the following section shall be substituted, namely :-
Stay of operation of award or its enforcement
"36.(1) Where the time for making an application to set aside the arbitral award under sub-section (1) of section 34 has expired then, subject to the provisions of sub-sections (2) to (4), the award shall be enforced under the Code of Civil Procedure 1908 (5 of 1908) in the same manner as if it were a decree of the court.
(2) Where an application is filed in the Court under sub section (1) of section 34 to set aside an arbitral award, the filing of such an application shall not by itself operate as a stay of the award unless, upon a further application made for that purpose, the Court grants stay of the operation of the award in accordance with the provisions of sub section (3).
(3) On the filing of the application referred to in sub section (2) for stay of the operation of the award, the Court may, without prejudice to any action it may take under sub section (1) of section 37A and subject to such conditions as it may deem fit to impose, grant stay of the operation of the arbitral award for reasons in brief to be recorded in writing, Provided that the Court, while considering the grant of stay, shall keep the grounds for setting aside the award in mind.
(4) The power to impose conditions referred to in sub-section (3) includes the power to grant ad interim measures not only against the parties to the award or in respect of the property which is the subject matter of the award but also to issue ad interim measures against third parties or in respect of property which is not the subject matter of the award, in so far as it is necessary to protect the interests of the party in whose favour the award is passed.
(5) The ad interim measures granted under sub-section (4) may be confirmed, modified or vacated, as the case may be, by the court subject to such conditions, if any, as it may deem fit, after hearing the affected persons."