CPC Order XXVII Rule 8A ‘archaic’, no exceptional treatment for Government: SC

The Supreme Court of India recently held that no exceptional treatment can be given to the Government while considering the application for stay filed by the Government in proceedings under Section 34 of the Arbitration and Conciliation Act.

Section 34 provides for filing an application for setting aside the arbitral award on limited grounds.

The Court held that the provisions of Order XXVII Rule 8A of the Civil Procedure Code (CPC), which states that no security shall be required from the Government in case of there being a money decree passed against the Government and the execution of which is prayed for, cannot be applied to arbitration.

The Court further stated that provisions of Order XXVII Rule 8A of the CPC are archaic, not applicable to current times and do not exempt the government from making deposits as directed by the Court.

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