CS Professional · Arbitration, Mediation and Conciliation · Conciliation Proceedings and International Perspective of Conciliation

Arbitral proceedings between Bharat Infra Ltd and Ganga Builders commenced in 2013, and an award for payment of money was made in 2018. Ganga Builders challenged the award under section 34 and sought a stay of its operation, alleging prima facie that the contract forming the basis of the award was induced by fraud. Which statement is correct under the official text of Sections 87 and 36?

The court shall stay the award unconditionally if a prima facie case of fraud or corruption is made out. The Explanation to Section 36 makes the proviso applicable to all court cases relating to arbitral proceedings, whether they commenced before or after 23 October 2015, so the 2013 commencement does not bar it.

1. ASection 87 bars the amendments, so the court cannot apply the fraud or corruption proviso to section 36
2. BThe proviso applies only if the arbitral proceedings commenced after 23 October 2015
3. CThe proviso on fraud or corruption applies to all court cases arising out of or in relation to arbitral proceedings, whether the arbitral or court proceedings commenced before or after 23 October 2015, so the court shall stay the award unconditionally if a prima facie case is made outCorrect
4. DThe court may only grant a conditional stay with regard to money decree provisions of the Code of Civil Procedure