Question

    Under Section 36(2), what happens to enforcement when a

    Section 34 application (to set aside the award) is filed?
    A Enforcement is automatically stopped until the Section 34 application is decided Correct Answer Incorrect Answer
    B Enforcement is not automatically stayed; only a court order granting stay can halt enforcement Correct Answer Incorrect Answer
    C The tribunal can decide whether enforcement proceeds during Section 34 proceedings Correct Answer Incorrect Answer
    D No enforcement can proceed until three months have passed Correct Answer Incorrect Answer
    E Enforcement always proceeds regardless of pending challenges Correct Answer Incorrect Answer

    Solution

    Explanation: Before the 2015 Amendment, filing a Section 34 application automatically stopped enforcement, causing delay. Post-2015, Section 36(2) changed this: filing a Section 34 application does not automatically stay enforcement. A party seeking to halt enforcement must obtain an explicit court order granting stay. This amendment drastically reduced delays and strengthened arbitration's finality, incentivizing parties to pursue arbitration. However, courts retain discretion to grant stay in exceptional cases (e.g., on grounds of fraud or public policy concerns) upon satisfaction of the established test: balance of convenience, prima facie case, and irreparable injury.

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