Court cannot defer execution of arbitration award merely due to pending Section 37 appeal: SC
The Supreme Court rules that an Execution Court can proceed with an arbitral award even if an appeal is pending, as long as no stay order is in place
The Supreme Court, on September 15, 2025, held that it is not proper for an Execution Court to defer consideration of an execution application concerning an arbitral award, or the objections to it, merely because an appeal under Section 37 of the Arbitration and Conciliation Act is pending, when no interim order is in place.
A bench of Justices Manoj Misra and Ujjal Bhuyan was dealing with the limited question of whether the Execution Court could adjourn execution proceedings solely on the ground that an appeal under Section 37 was pending against the rejection of objections filed under Section 34 of the Act.
The case arose from an appeal filed by Chakradhari Surekha. The court noted that an objection under Section 34 challenging the arbitral award had already been dismissed. While an appeal under Section 37 is still pending, no stay order operates against the award.
The decree holder had sought to execute the award. However, by an order dated May 9, 2025, the Delhi High Court, acting as the Executing Court, adjourned proceedings, taking note of the pending appeal.
During arguments, both sides acknowledged that no interim order had been granted against the award despite the pendency of the appeal under Section 37. The controversy instead centered on whether the award itself was executable, with respondents raising objections on that front.
"In our view, the question of executability of the award can be gone into by the Execution Court in accordance with law while addressing objections as and when raised. However, it would not be proper for the Execution Court to defer consideration of the execution application and the objections thereto only because an appeal is pending under Section 37 when there is no interim order operating against the award against which objection under Section 34 of the Act stands rejected," the bench observed.
Disposing of the appeal, the apex court clarified that subject to any interim order that may be passed in the pending Section 37 appeal, the Execution Court is free to proceed with the execution of the award in accordance with law.
"Needless to observe that if any objection is raised as regards executability of the award, the same shall be addressed in accordance with law after giving the opportunity of hearing to the parties concerned," the court added.
Case Title: Chakradhari Surekha Vs Prem Lata Surekha Through SPA & Ors
Judgment Date: September 15, 2025
Bench: Justices Manoj Misra and Ujjal Bhuyan