ValkyaEditorial

Tagged “hindustan-construction”

1 article on hindustan-construction.

Landmark JudgmentSupreme Court of India

Hindustan Construction Company v. Union of India: how Section 87 fell and the no-automatic-stay regime was restored

On 27 November 2019, a three-judge bench of the Supreme Court — Rohinton Fali Nariman, J. (authoring), Surya Kant, J. and V. Ramasubramanian, J. — struck down Section 87 of the Arbitration and Conciliation Act 1996 (inserted by the 2019 Amendment) as manifestly arbitrary and violative of Article 14. The decision restored the no-automatic-stay regime built by the 2015 amendments and confirmed by BCCI v. Kochi Cricket (2018): a Section 34 challenge does not, of itself, stay the enforcement of an arbitral award; the award-debtor must apply separately for a stay under Section 36(3). A close reading of the architecture, the legislative-reversal pattern that brought Section 87 into being, the manifest-arbitrariness reasoning, and the practitioner discipline now stable on independent stay applications.

Valkya Editorial··16 min