HINDUSTAN CONSTRUCTION COMPANY LIMITED & ANR.DIA & ORS. versus UNION OF INDIA

HINDUSTAN CONSTRUCTION COMPANY LIMITED & ANR.DIA & ORS. versus UNION OF INDIA

Section 36 of the Arbitration and Conciliation Act, 1996 does not provide for an automatic stay of arbitral awards upon filing a challenge under Section 34; the award becomes enforceable as a decree under the CPC once it is final and binding. The introduction of Section 87 and deletion of Section 26 by the 2019 Amendment Act were arbitrary and contrary to the public interest behind the 2015 Amendment Act. The Supreme Court cannot resolve disputed factual quantums of arbitral awards in writ proceedings under Article 32. Governmental/statutory bodies cannot be subjected to resolution processes under the Insolvency and Bankruptcy Code.

Parties
Petitioner: Hindustan Construction Company Limited; Respondent: Union of India; Respondent: NHPC; Respondent: NHAI; Respondent: IRCON; Respondent: NTPC
Jurisdiction
India
Judgment Date
27 November 2019
Procedural Posture
Writ Petition (civil) No. 1074 of 2019 / Final Judgment
Outcome
Writ petitions disposed of
Legal Topics
Automatic Stay of Arbitral Awards, Constitutional Challenge to Amendment Acts, Legislative Competence, Insolvency Code Interpretation, Enforcement of Arbitral Awards
Arbitration Law Constitutional Law Insolvency Law Civil Procedure Automatic Stay of Arbitral Awards Constitutional Challenge to Amendment Acts Legislative Competence Insolvency Code Interpretation +1 more

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Parties

Hindustan Construction Company Limited

Petitioner

Union of India

Respondent

NHPC

Respondent

NHAI

Respondent

IRCON

Respondent

NTPC

Respondent

Procedural Posture

Writ Petition (civil) No. 1074 of 2019 / Final Judgment

Legal Issues

  1. 1 Whether Section 36 of the Arbitration and Conciliation Act, 1996 provides for automatic stay on arbitral awards
  2. 2 Constitutional validity of introduction of Section 87 into the Arbitration Act, 1996 and deletion of Section 26 of the 2015 Amendment Act by the 2019 Amendment Act
  3. 3 Interpretation of the term 'corporate person' under Section 3(7) of the Insolvency and Bankruptcy Code, 2016

Ratio Decidendi

Section 36 of the Arbitration and Conciliation Act, 1996 does not provide for an automatic stay of arbitral awards upon filing a challenge under Section 34; the award becomes enforceable as a decree under the CPC once it is final and binding. The introduction of Section 87 and deletion of Section 26 by the 2019 Amendment Act were arbitrary and contrary to the public interest behind the 2015 Amendment Act. The Supreme Court cannot resolve disputed factual quantums of arbitral awards in writ proceedings under Article 32. Governmental/statutory bodies cannot be subjected to resolution processes under the Insolvency and Bankruptcy Code.

Court Disposition

Writ petitions disposed of

Orders

  • M.A. Nos. 2140-2144 of 2019 in C.A. Nos.2621-2625 of 2019 are allowed in terms of prayer (a) therein