Sorry state of affairs: SC over delay in execution of arbitral awards
New Delhi, April 2
The Supreme Court (SC) has expressed concern over delay in execution of arbitral awards, calling it “a very sorry state of affairs”.
A Bench of Justices MR Shah and BV Nagarathna made the observation while hearing a case in which the arbitral award passed in 1992 remained pending for execution despite passage of more than 30 years. The SC said the case was a glaring example of frustrating the arbitration proceedings under the Arbitration Act.
Purpose defeated
If the award is not executed at the earliest, it will frustrate the purpose and object of the Arbitration Act as well as the Commercial Courts Act. —Supreme Court Bench
It noted that the award has been passed in 1992 and the execution petition was of 2003, which is still reported to be pending. “It is very unfortunate that even after 30 years, the party in whose favour the award is passed is not in a position to enjoy the fruit of the litigation/award. Even the execution petition is also pending for more than 19 years. This is a very sorry state of affairs that even the execution proceedings to execute the award passed under the Arbitration Act are pending for more than 20 years. If the award, under the Arbitration Act, is not executed at the earliest, it will frustrate the purpose and object of the Arbitration Act as well as the Commercial Courts Act,” it noted. —
