Authority: Supreme Court of India

Order Date: 13-08-2026

Case Overview

  • Petition: Special Leave Petition (Civil) Diary No. 42167/2026 filed by M/s Allied Traders against Union of India & others.
  • Origin: Arising out of the impugned final judgment and order dated 26-03-2026 in AUS37AACA No. 18/2024 passed by the High Court of Judicature at Allahabad.
  • Interim Applications: IA No. 217508/2026 (condonation of delay), IA No. 217506/2026 (exemption from filing C/C of the impugned judgment), IA No. 217512/2026 (exemption from filing O.T.).
  • Background: The petitioner is aggrieved by an interim order dated 26.03.2026 passed by the High Court in Arbitration Appeal No.18 of 2024, which was preferred by the Union against the order of the Commercial Court, Bareilly in Section 34 proceedings.
  • Arbitration Context: The appeal pending before the High Court is under Section 37 of the Arbitration and Conciliation Act, 1996. An arbitral award in favour of the petitioner exists, and the Section 34 application was dismissed.
  • Core Grievance: Although 50% of the arbitral award amount has been deposited by the Union, the petitioner has not been permitted to withdraw or have it disbursed, and the matter is not progressing before the High Court.

Court Directions

1. Delay in filing the petition is condoned.

2. The petitioner may request the concerned court to permit withdrawal of the 50% amount deposited by the Union, subject to terms and conditions the court may impose.

3. The Court requests the High Court to take up Arbitration Appeal No.18 of 2024 for hearing at the earliest and to dispose of it within two months from the date of this order.

4. ASGs Kanakamedala Ravindra Kumar and Raghavendra Shankar, appearing for the Union, assured full cooperation for the effective and expeditious disposal of the appeal before the High Court.

5. The Special Leave Petition stands disposed of, and any pending applications, if any, are also disposed of.

Final Outcome

  • The Supreme Court condoned the filing delay, directed that the petitioner may seek withdrawal of the deposited award amount under appropriate conditions, and instructed the High Court to expedite the arbitration appeal within a two‑month timeframe. The SLP and any related pending applications are dismissed.

Topics: Arbitration, Court Proceedings