Park Controls Secures Bank Guarantee Stay on NRDC Award

Authority: Supreme Court of India (Civil Appellate Jurisdiction)

Order Date: 05 October 2026

Case Overview

• Appellant: M/S Park Controls and Communications Private Limited; Respondent: National Research Development Corporation.
• The appellant filed an application under Section 36 of the Arbitration Act seeking a stay of the arbitral award passed by the sole arbitrator.
• The High Court had directed the appellant to deposit the entire decretal amount with interest within four weeks with the Registry of the High Court, conditionally staying the award.
• Counsel for the appellant argued for furnishing a running bank guarantee of a nationalized bank instead of cash deposit.

Final Outcome

• The Supreme Court allowed the exemption application and granted leave.
• It modified the High Court order, permitting the appellant to furnish a running bank guarantee of the decretal amount, with interest as on the date, to the Registry of the High Court.
• The guarantee must be furnished within four weeks from the order date; failure to do so will allow the award holder to proceed with execution of the arbitral award.
• The appeal and any pending applications are disposed of.

Topics: Arbitration, Court Order, Stay of Award