Supreme Court Allows BMD to Withdraw Rs 5 Cr

Authority: Supreme Court of India

Order Date: July 16, 2026

Parties: BMD Pvt. Ltd. (Appellant) vs. State of Himachal Pradesh (Respondent).
Background: The dispute stems from an arbitral award of Rs 28 crore in favour of the State, which was deposited before the Executing Court under Execution Petition Nos. 22/2023 and 23/2023. The appellant sought modification of the execution order, citing liberty granted by the Supreme Court in an earlier order dated 16‑02‑2026. The Executing Court (High Court) passed an order on 16‑04‑2026 modifying the earlier order, but the Division Bench of the High Court, while hearing an appeal under Section 37 of the Arbitration and Conciliation Act, 1996, considered only the earlier order dated 17‑09‑2025 and ignored the later modification.
State’s Position: The State argued that the award was ex parte, the application under Section 34 was dismissed, and the entire award amount of Rs 28 crore had been deposited. It sought a restraint order to prevent withdrawal of the amount without a bank guarantee, emphasizing that the appeal was at an advanced stage and both parties were cooperating for speedy resolution.
Appellant’s Position: The appellant contended that the liberty granted by the Supreme Court should be honoured, allowing withdrawal of the deposited amount without furnishing any security, and sought modification of the High Court’s impugned order.

The Supreme Court held that the ends of justice are met by permitting the appellant to withdraw Rs 5 crore only, without any security, provided the appellant submits an indemnity bond for the withdrawn amount before the Executing Court.
The Court directed the Division Bench of the Himachal Pradesh High Court to dispose of the State’s appeals expeditiously.
The appeals are disposed of in the terms of the signed order, and any pending applications, if any, are deemed disposed.

Topics: Arbitration, Execution of Award