Stay of Execution - The Legal Chamber

This Supreme Court judgment reaffirms that objections to the execution of an arbitral award under Section 47 of the CPC are maintainable only within a very narrow compass, limited to grounds of jurisdictional infirmity or voidness. The Court emphasized that allegations of fraud or breach of fiduciary duty by a party’s own officers, raised after the award has attained finality, do not constitute such grounds unless they render the award a nullity. The business judgment rule protects decisions that fall within a range of reasonableness. Facts Of The Case: The dispute arose from a Long Term Agreement (LTA) dated 07.03.2007 between MMTC Limited and Anglo American Metallurgical Coal Pvt. Limited for the supply of coking coal. The agreement included an option for MMTC to extend the con...

The Supreme Court upheld the High Court's grant of unconditional stay on a money decree's execution under Order XLI Rule 5, CPC, ruling that deposit of the decretal amount is not mandatory. An unconditional stay can be granted in exceptional cases where the decree is egregiously perverse, patently illegal, or facially untenable, upon establishing "sufficient cause." Facts Of The Case: The petitioners, Lifestyle Equities C.V. & Anr., proprietors of the "Beverly Hills Polo Club" (BHPC) trademark, filed a suit for infringement and damages against Amazon Technologies Inc. and others before the Delhi High Court. The suit claimed damages of approximately Rs. 2 crore. Amazon was proceeded against ex parte in April 2022. The learned Single Judge, after an ex parte trial, decreed the suit...

Tag: Stay of Execution

Arbitration Award Final: Supreme Court Dismisses MMTC’s Post-Decree Objections

Supreme Court Explains “Sufficient Cause”: Key Tests for Granting Stay on a Money Decree