Disclaimer: This has been reported after the availability of the order of the Court and not on media reports so as to give an accurate report to our readers.
Punjab and Haryana High Court: In a civil revision petition filed, under Article 227 of the Constitution, by the petitioner, a decree holder, seeking modification of the order passed by the Additional District Judge by which directed the release of the deposited amount, a Single Judge Bench of Jasgurpreet Singh Puri, J., held that the Executing Court could not have imposed the onerous condition of furnishing bank guarantee.
The petitioner submitted that the objections filed by the respondents under Section 34 of the Arbitration and Conciliation Act, 1996 (‘A&C Act’) were dismissed. Thereafter, the respondents filed an appeal under Section 37 of the A&C Act, which was pending before the High Court, but no interim order was passed in the said appeal. Then, in the execution petition filed by the petitioner against the respondents, the Executing Court directed the release of the deposited amount, subject to furnishing of bank guarantee equivalent to the deposited amount.
Petitioner contended that the aforesaid onerous condition imposed by the Executing Court was not in accordance with law. Thus, the petitioner approached the High Court only to that limited extent.
The Court stated that the Executing Court could not have imposed the onerous condition of furnishing bank guarantee and in absence of any interim order in appeal, the Executing Court is required to execute the decree without imposing any such onerous condition.
Thus, the Court allowed the petition at hand and set aside the condition imposed by the Executing Court to the extent of directing the petitioner to furnish a bank guarantee for release of the amount.
[Aggarwal Sons v. Union of India, CR No. 7890 of 2025, decided on 23-1-2026]
Advocates who appeared in this case:
For the Petitioner: Aman Kashyap, Advocate, Aarush Kashyap, Advocate and Alka Kashyap, Advocate
For the Respondent: Neha Sharma, Advocate
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