Bombay High Court
THE NATIONAL HIGHWAYS AUTHORITY OF INDIA THR. PROJECT DIRECTORversusMADHURI SHIRISH BEKE THR. POA MILIND V KULKARNI AND ORS.
- Disposal
- Dismissed
Holding
The Court held that an order under Section 36(3) of the Arbitration and Conciliation Act is not appealable under Section 37 and may be upheld with the condition of depositing 50% of the compensation, leading to dismissal of the writ petition.
Summary
The National Highways Authority of India (NHAI) filed a writ petition challenging an order dated 08.05.2026 that stayed an arbitral award of 08.06.2023, subject to the petitioner depositing 50% of the compensation in the District Court within two months. The respondents argued that the order was appealable under Section 37 of the Arbitration and Conciliation Act, 1996, and therefore the petition was not maintainable. The petitioner contended that the arbitrator’s award was obtained by fraud, citing a criminal FIR and an A.C.B. report, and claimed the condition of depositing half the amount was onerous. The Court held that the order was issued under Section 36(3) of the Act, which is not appealable under Section 37, and that consistency with earlier orders required the petitioner to comply with the deposit condition. Consequently, the petition was dismissed and the petitioner was directed to deposit the stipulated amount while the related civil miscellaneous application proceeds separately.
Issues considered
- Whether an order passed under Section 36(3) of the Arbitration and Conciliation Act is appealable under Section 37, rendering the writ petition non‑maintainable.
- Whether the condition of depositing 50% of the compensation amount as a prerequisite for the stay of the arbitral award is valid.
- Whether allegations of fraud against the arbitrator affect the legality of the stay order.
Legislation cited
- Arbitration and Conciliation Act, 1996 — s. 34, 36(3), 37, 9
Subjects
- Arbitration
- Stay of award
- Section 36
- Section 37
- Compensation deposit
- Fraud
- Writ petition
- Maintainability
- NHAI
- Acquisition proceedings
Judgment
905-WP-2920-2026=.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIRCUIT BENCH AT KOLHAPUR
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 2920 OF 2026
Digitally
signed by
UDAY The National Highways Authority Of India Thr. … Petitioner
UDAY SHIVAJI
SHIVAJI JAGTAP Project Director
JAGTAP Date:
2026.09.15
14:50:47
+0530
Vs.
Madhuri Shirish Beke Thr. POA Milind V Kulkarni … Respondents
and Ors.
………….
Mr. Sandeep Koregave a/w Siddharth Ambegaonkar for the Petitioner
Mr. Tejpal S. Ingale a/w Vrunali J. Vilankar, Aaryan Sawant, V.V. Kadam
for Respondent Nos. 1 to 3(a) to 3(e).
Mr. Sanjay D. Rayrikar, AGP for Respondent No. 4 – State.
………….
CORAM : SHAILESH P. BRAHME, J.
DATE : 10th SEPTEMBER, 2026.
P. C. :
. Heard learned counsel for the parties.
2. The petition is directed against the order dated 08.05.2026
granting stay to the award of Arbitrator dated 08.06.2023 subject to
depositing of 50% of compensation amount in the District Court within a
period of two months.
3. Learned counsel Mr. Tejpal Ingale, appearing for respondent nos.1
to 3(a) to 3(e) - claimants has raised preliminary objection regarding
maintainability of the petition. It is submitted that impugned order is
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passed below Exh.5, which was preferred under Section 9 of the
Arbitration and Conciliation Act is appealable under Section 37 of the Act
and, therefore, the present Writ Petition is not maintainable.
4. While repealing the submissions, learned counsel for the petitioner
would advert my attention to Section 36(3) of the Act which enables the
party to file application for stay. It is submitted that in application Exh.5,
though Section 9 is quoted, it is in fact, under Section 36 of the Act.
5. It is trite law that wrong mentioning of Section would not render
the proceedings illegal or not maintainable. Award passed by the
competent authority was subjected to challenge in arbitration
proceedings which culminated in Award on 08.06.2023. Against the
award, application under Section 34 has been preferred by the petitioner.
Application Exh.5 in its letter and spirit is under Section 36(3) of the Act.
I am of the considered view that impugned order is not appealable and
writ petition is rightly filed. The objection of the respondents stands
rejected.
6. Learned counsel for the petitioner submits that fraud has been
played by the Arbitrator and criminal action has been set into motion
against him. FIR is lodged on 08.06.2023 and there is a report of A.C.B.
which would indicate involvement of the Arbitrator. It is submitted that
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the respondents – claimants have been unduly benefited. If the
impugned order is sustained, the petitioner will face grave hardship in
depositing the amount which is awarded arbitrarily. There are other
claimants also, who would resort to same course. It is submitted that the
petitioner has no objection for expediting the proceedings under Section
34 of the Act but direction to deposit 50% is onerous and unsustainable.
Learned Counsel for the petitioner would advert my attention to the
observations of the District Court in the impugned order granting liberty
to the claimants to apply for withdrawal of the amount.
7. Learned counsel for the petitioner has relied upon the following
judgments.
(i) Alkem Laboratories Ltd. Vs. Issar Pharmaceduticals Pvt. Ltd.
(2024) SCC Online Bom 5978.
(ii) National Collateral Management System Vs. Haryana Co-operative
Supply, (2022) SCC Online P&H 4358.
(iii) Popular Caterers Vs. Ameet Mehta & Ors. (2025) SCC Online SC
3334.
(iv) Lifestyle Equities C.V. Vs. Amazon Technologies, (2026) 3 SCC 641.
(v) Sepco Electric Power Construction Corporation Vs. Power Mech
Projects Ltd. (2022) SCC Online SC 1243.
8. Learned counsel Mr. Ingale would tender on record common
judgment passed by this Court in the matters arising out of the self same
acquisition proceedings. In those 20 matters, the District Judge had
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directed the petitioner to deposit 50% of the enhanced compensation.
Accordingly, the amount was deposited. The approach of the petitioner
against the present respondents is stated to be discriminatory. It is
candidly submitted that the respondents at present do not wish to receive
that amount as the proceedings are pending before the District Court.
9. I have considered the writ petitions filed by the petitioners in case
of other claimants arising out of the same acquisition proceedings. The
facts of the present matters are identical with the matters decided by
common judgment dated 07.07.2026. In those matters also, the District
Judge directed the petitioner to deposit 50% of the amount. The self-
same course can be adopted in the present matter.
10. My attention is adverted by learned counsel for the petitioner that
respondents – claimants were disbursed the amount and their claim for
enhancement is under consideration. Learned District Judge has made
passing observations that the claimants would be having liberty to
withdraw the amount if the separate applications are filed but that is not
the direction issued by the Court in the impugned order. The
apprehension of the learned counsel for the petitioner is misplaced.
11. Though criminal law is set into motion against the erring Officer /
Arbitrator, the latest update of the criminal proceedings have not been
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brought before this Court. The equities can be balanced by directing the
petitioner to deposit the amount and withholding the same.
12. I find that there has to be consistency in the orders passed by the
Court. No differential treatment can be given in the present matter. I
find no substance in the petition. The directions issued in the impugned
order needs to be complied with. The judgments cited by the petitioner
are on the point that award of arbitrator can be stayed under Section
36(2) without imposing any condition if exceptional case is made out or
it is obtained by fraud or corruption. The petitioner has complied with
the condition in case of other claimants and disbursement is withheld.
Similarly, in the present case disbursement can be withheld.
13. The Writ Petition is dismissed.
14. It is clarified that Civil Miscellaneous Application No.72 of 2023
shall be decided along with others expeditiously on its own merits
without being influenced by the observations recorded by this Court.
( SHAILESH P. BRAHME, J. )
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