AP-COM/245/2026 of BOARD OF SYAMA PRASAD MOOKERJEE PORT Vs E H CONSTRUCTION COMPANY PRIVATE LIMITED on 28 September 2026

OCD-25 ORDER SHEET

IN THE HIGH COURT AT CALCUTTA COMMERCIAL DIVISION ORIGINAL SIDE

AP-COM/245/2026

BOARD OF SYAMA PRASAD MOOKERJEE PORT -VS- E H CONSTRUCTION COMPANY PRIVATE LIMITED

BEFORE: The Hon’ble JUSTICE GAURANG KANTH Date : 28th September, 2026. Appearance: Mr. Kishore Datta, Sr. Adv. (VC) Mr. Debraj Sahu, Adv. Mr. Abhishek Banerjee, Adv. …for the petitioner/Port Trust

Mr. Asif Hussain, Adv. Mr. Sujata Chowdhary, Adv. ...for the respondent

The Court: The petitioner has preferred the present application under Section 36(2) of the Arbitration and Conciliation Act, 1996, seeking stay of the operation and enforcement of the arbitral award dated 13th September, 2025 passed by the learned sole Arbitrator in the arbitration proceeding between the parties. Learned senior counsel for the petitioner submits that the dispute between the parties arose out of a contract wherein the respondent had awarded the work to the petitioner to the tune of Rs.11,92,82,382.77/-. Dispute subsequently arose between the parties resulting in termination of the contract by the petitioner and reference of the dispute to arbitration. Mr. Datta, learned senior counsel for the petitioner, submits that the learned Arbitrator, after completion of the pleadings and evidence and upon hearing the parties passed the arbitral award dated 13th September, 2025.

The petitioner has challenged the said award under Section 34 of the Act in AP(COM) No.56 of 2026. The said application is pending adjudication before this Court. Learned senior counsel for the petitioner submits that the arbitral award, inter alia, is vitiated by patent illegality, perversity and violation of the fundamental policy of Indian Law. He further submits that his counter-claim has been summarily rejected by the learned Arbitrator without assigning any reasons. He further submits that the learned Arbitrator has travelled beyond the pleadings and the scope of the reference and has dealt with the consequences of termination without any specific issue being framed with regard to the validity thereof. He submits that the learned Arbitrator has relied upon findings which, according to the petitioner are contrary to evidence and material on record. Learned senior counsel for the petitioner further submits that the award-holder has initiated execution proceedings in EC(COM) No.126 of 2026 and that unless the operation and enforcement of the award is stayed, the execution proceedings would continue against the petitioner during the pendency of the Section 34 petition. Learned counsel for the respondent states that the petitioner has sought stay of the arbitral award without depositing any money. He has relied upon a Judgment of the Hon’ble Supreme Court in the matter of: International Seaport Dredging Private Limited Versus Kamarajar Port Limited reported as (2024) 19 Supreme Court Cases 289 to impress upon the Court that no unconditional stay can be granted to the petitioner. Having considered the material placed on record and the arguments advanced by the counsel for the parties, this Court is of the view that the petitioner has made out a case for stay of the enforcement of the arbitral award subject to furnishing of appropriate security. The mere fact that the respondents a statutory authority and a state within the meaning of Article 12 of the Constitution and that there may be an apprehension regarding its ability to satisfy the award in the event the same is ultimately upheld, cannot, by itself be a ground for granting an unconditional stay of the award. At the same time, this Court is entitled to impose such condition as may be considered appropriate, having regard to the facts and circumstances in the present case. In the circumstances and without expressing any opinion on the merits of the grounds raised in AP(COM) No.56 of 2026, there shall be a stay of the operation, enforcement and execution of the award dated 13th September, 2025 subject to the petitioner depositing, cash deposit of the awarded amount of Rs.80,74,026.42/- along with up to date interest within a period of one week after the ensuing puja vacation with the Registrar, Original Side, High Court of Calcutta. Upon such deposit being made, the Registrar, Original Side, High Court of Calcutta, shall keep the said amount in an interest bearing account with auto renewal facility with a Nationalized Bank. Upon such deposit being made, there shall be a stay of the operation of the award dated 13th September, 2025. The execution petition being EC(COM) No.126 of 2026 shall remain stayed during the subsistence of the aforesaid order. With the aforesaid directions, the present application stands disposed of.

(GAURANG KANTH, J.)

S. A. AR (CR)