Mother Dairy Fruit And Vegetable Pvt. Ltd. Vs. Keventer Agro Limited (May 2024)
 
👉 An Arbitral award was rendered in favor of the Respondent, henceforth a set aside petition was filed by the petitioner before the commercial court along with an application to stay the execution of the award.
 
👉 Upon the commercial Court dismissing the stay application, the petitioner filed a writ petition before the High Court of Gujarat, thus challenging the order of Commercial court.
 
👉 The petitioner urged that the discretion conferred upon the commercial Court was not exercised judiciously and further the petitioner was directed to deposit 100 % of the decretal amount.
 
The court observed the following
 
✍️ The petitioner did not make any arguments on the merits or demerits of the award. Mere request made by the petitioners for stay of the execution of the decree on furnishing of bank guarantee was not tenable, without contending anything more on the merits of the award, i.e. demonstrably making out a prima facie case that the petitioners have fair chance of success in the proceedings under Section34 of the Act 1996.
 
📝 The scope of scrutiny under Article 227 of the Constitution of India, is not to interfere in the discretion exercised by the Commercial Court on the mere assertion that the discretion was not exercised judiciously, without saying anything more.

🖇️ Moreover, arbitration proceedings are essentially alternate dispute resolution methods for early / quick resolution of disputes and in case of a money decree, if automatic stay is granted, the very purpose of quick resolution of dispute through arbitration would stand defeated, inasmuch as, the decree holder would be fully deprived of the fruits of the award on mere filing of the application under Section 34 of the Arbitration Act.
 
👨‍⚖️ The High Court dismissed the writ petition citing that the petitioner failed to demonstrate the primafacie reasons to stay the execution of the impugned award.