The Punjab and Haryana high court Tuesday dismissed appeals filed by the municipal corporations of Jalandhar and Moga against the rejection of their objections to a 2022 arbitral award worth over Rs 296 crore.
A division bench, comprising Chief Justice Sheel Nagu and Justice Sanjiv Berry, ruled that statutory bodies like municipal corporations cannot claim unconditional stays on such awards and must comply with conditions akin to those for private parties, reinforcing the principle of equality under the Arbitration and Conciliation Act, 1996.
The judgment, delivered in FAO-CARB-9-2024 and FAO-CARB-10-2024, stems from disputes over a 2011 concession agreement for integrated municipal solid waste management projects in the Ferozepur and Jalandhar clusters. The agreement, signed between the municipal corporations and respondent M/s JITF Urban Waste Management (Jalandhar) Ltd, aimed to implement waste handling systems across multiple districts.
Implementation issues led to arbitration, culminating in a January 15, 2022, award directing Jalandhar Municipal Corporation to pay Rs 204.44 crore and Moga Municipal Corporation to pay Rs 92.29 crore, both with interest from the award date.
The appellants challenged the award under Section 34 of the 1996 Act, which allows courts to set aside awards on limited grounds such as incapacity of a party, invalid arbitration agreements, procedural irregularities, or conflicts with public policy. Concurrently, they sought stay under Section 36, which governs enforcement and permits conditional halts on the award’s operation. The commercial court initially granted unconditional stay in May and August 2022, but these were quashed by the high court in revision petitions, with directions to reconsider under legal provisions.
In August 2023, the commercial court imposed a conditional stay, requiring the appellants to deposit 100 per cent of the award amounts as fixed deposit receipts in court. Despite extensions till January 8, 2024, including one granted amid a pending high court revision (later withdrawn), the corporations failed to deposit any funds. This led to the dismissal of their Section 34 objections on January 8, 2024, prompting the current appeals.
Senior counsel for the appellants, Dr Anmol Rattan Sidhu, argued that as statutory corporations under Article 243Q of the Constitution and the Punjab Municipal Corporation Act, 1976, the bodies deserved differentiated treatment from private litigants. He contended the 100 per cent deposit condition violated principles for public entities and that the objections were dismissed hastily without merits adjudication. Reliance was placed on a 2023 Delhi high court decision in Sepco Electric Power Construction Corporation vs M/s Power Mech Projects Ltd, where an appeal succeeded after partial compliance.
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Countering this, senior counsel Anand Chibber for JITF argued that the award was lawful and enforceable as a money decree under Order 41 Rule 5 of the Code of Civil Procedure, 1908, which mandates security for stays. He highlighted the appellants’ repeated delays through applications and revisions as mala fide conduct aimed at denying the respondent the award’s benefits. Chibber cited the Supreme Court’s 2024 ruling in International Seaport Dredging Pvt Ltd vs Kamarajar Port Ltd, emphasizing no exceptional status for government entities under the Act, and distinguished Sepco on grounds of non-compliance here.
The high court, in a 19-page order authored by Justice Berry, sided with the respondent.
The bench underscored that the Arbitration Act is a self-contained code promoting swift dispute resolution and equal treatment under Section 18. “No distinction is made nor any differential treatment is to be given to the Government while considering an application for grant of stay of a money decree in proceedings under Section 34,” it quoted from PAM Developments.
The ruling clarifies that while Section 34(2) uses “may” for setting aside awards, granting discretion, courts need not adjudicate merits if defiance of stay conditions persists. “The conduct of the appellants herein too being contumacious… the reliance placed by the appellants on Sepco’s case is hopelessly misplaced,” the bench observed.
Manraj Grewal Sharma is a senior journalist and the Resident Editor of The Indian Express in Chandigarh, where she leads the newspaper’s coverage of north India’s most politically and institutionally significant regions. From Punjab and Haryana to Himachal Pradesh and the Union Territory of Chandigarh, she oversees reporting at the intersection of governance, law, politics and society. She also reports on the diaspora, especially in Canada and the US.
With a career spanning journalism across several countries, academia and international development, Manraj brings a rare depth of perspective to regional reporting. She is widely regarded as a leading chronicler of Punjab’s contemporary history and socio-political evolution, particularly its long shadow of militancy, federal tensions and identity politics. Her book, Dreams after Darkness, remains a definitive account of the militancy years and their enduring aftermath.
Professional Background & Expertise
A gold medalist in mass communication and a post-graduate in English literature, Manraj has a multifaceted career spanning journalism, academia, and international development. She was also awarded a fellowship by National Foundation of India and did several in-depth pieces on Manipur. Internationally, she has reported from Israel, US, UK, Myanmar, and Mauritius
Her key focus areas include:
Regional Politics, History, Agriculture, Diaspora, and Security. Of late, she has started focusing on Legal & Judicial Affairs: Much of her recent work involves reporting on high-stakes cases in the Punjab and Haryana High Court, ranging from environmental policy to civil rights.
International Consulting: She previously served as a consulting editor for the Asia Pacific Adaptation Network and a publishing consultant for the Asian Development Bank (ADB) in Manila.
Academia: For five years, she was the managing editor of Gender, Technology and Development, a peer-reviewed international journal at the Asian Institute of Technology, Bangkok.
Recent Notable Articles (Late 2025)
Her recent reportage focuses heavily on judicial interventions and regional governance:
1. Environment & Governance
"‘NGT can’t test legality of policy’: HC hears challenge to Punjab’s ‘Green Habitat’ plan" (Dec 22, 2025): Covering a critical legal battle over whether the National Green Tribunal has the authority to strike down a state policy regularizing farmhouses on delisted forest land.
"High court pulls up Punjab poll panel over audio clip probe" (Dec 10, 2025): Reporting on judicial concerns regarding the transparency and fairness of local body elections.
2. Legal Rights & Social Welfare
"HC issues notice to Punjab, Haryana over delay in building old age homes" (Dec 22, 2025): Reporting on a contempt petition against top officials for failing to establish government-run homes for the elderly as promised in 2019.
"Victims can appeal acquittals in sessions court without seeking special leave" (Dec 19, 2025): Highlighting a significant procedural shift in criminal law following a Supreme Court ruling.
"HC upholds benefits for Punjab FCI officer acquitted in 20-year-old bribery case" (Dec 19, 2025): A report on the concept of "honourable acquittal" and its impact on employee benefits.
3. Human Rights & Identity
"As Punjab denies parole to MP Amritpal Singh, HC asks it to submit ‘foundational material’" (Dec 1, 2025): Covering the legal proceedings regarding the radical preacher and sitting MP's request to attend Parliament.
"Protecting life paramount: HC backs Muslim woman in live-in after verbal divorce" (Nov 6, 2025): Analyzing judicial protections for personal liberty in the context of traditional practices.
Signature Beats
Manraj is recognized for her ability to decode complex judicial rulings and relate them to the everyday lives of citizens. Whether it is a 30-year-old land battle in Fazilka or the political implications of Kangana Ranaut’s candidacy in Mandi, her writing provides deep historical and regional context.
Contact
@grewal_sharma on X
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