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Sample “Application for Stay” under Section 36(3)

Disclaimer: AI Generated, verify and cross check with a legal authority.

This draft is structured based on the 2021 Amendment to Section 36(3) and the high threshold set by the Supreme Court in Popular Caterers (2025) and Lifestyle Equities (2025).

IN THE COURT OF THE DISTRICT JUDGE / COMMERCIAL COURT AT [CITY] O.M.P. (I) (COMM) NO. ____ OF 2026

IN THE MATTER OF: [Award Debtor Name] … Petitioner/Applicant VERSUS [Award Holder Name] … Respondent

APPLICATION UNDER SECTION 36(3) OF THE ARBITRATION AND CONCILIATION ACT, 1996 (AS AMENDED IN 2021) SEEKING UNCONDITIONAL STAY OF THE OPERATION OF THE ARBITRAL AWARD DATED [DATE]

THE APPLICANT ABOVE-NAMED MOST RESPECTFULLY SHOWETH:

That the Applicant has filed the accompanying Petition under Section 34 of the Act challenging the Arbitral Award dated [Date] passed by the Ld. Sole Arbitrator/Tribunal in the matter of [Case Name/Reference].
That the present application is being moved seeking an unconditional stay on the enforcement of the said Award, as the Applicant has a prima facie case that the [Arbitration Agreement / Making of the Award] was induced and effected by fraud and corruption.

GROUNDS FOR UNCONDITIONAL STAY

Inducement by Fraud (Section 36(3) Proviso II): The Applicant submits that the Award was obtained by the Respondent through active concealment and suppression of material evidence.

Particulars of Fraud: [E.g., The Respondent placed a forged “Completion Certificate” dated XX/XX/XXXX before the Tribunal, which was the sole basis for the award of damages.]
Impact: Had this fraud not been committed, the Tribunal would have lacked the jurisdiction or factual basis to pass the Impugned Award.

Corruption in the Making of the Award: The Applicant prima facie establishes that the proceedings were tainted by moral obliquity.

Evidence: [E.g., Proof of undisclosed conflict of interest or financial collusion between the Respondent and the Tribunal, discovered post-award].

Meeting the “Exceptional Circumstances” Test (Popular Caterers v. Ameet Mehta, 2025): The Applicant further submits that the Award is:

Facially Untenable: The illegality is evident from the face of the record without requiring a deep dive into evidence.
Egregiously Perverse: No reasonable person could have arrived at such a conclusion given the documents [List Documents] suppressed by the Respondent.

Irreparable Loss: If an unconditional stay is not granted, the Applicant will be forced to deposit [Amount], which was obtained through the aforementioned fraudulent means, causing a gross miscarriage of justice and financial ruin.

PRAYER

In light of the above, it is most respectfully prayed that this Hon’ble Court may be pleased to:

(a) Grant an unconditional stay on the operation and execution of the Arbitral Award dated [Date] pending the final disposal of the Section 34 Petition;
(b) Pass any other order as this Hon’ble Court may deem fit.

DATE: [Current Date, 2026] PLACE: [City]

[NAME OF ADVOCATE] Counsel for the Petitioner

Key Drafting Tips for 2026:

Don’t be Vague: The 2025 rulings (like Popular Caterers) punish vague “fraud” claims with heavy costs. You must specify the exact document or act that was fraudulent.
The “Prima Facie” Standard: You don’t need to prove fraud beyond a doubt yet, but you must show enough evidence to “shock the conscience” of the judge.
Affidavit of Support: Always accompany this with an affidavit specifically swearing to the facts of the fraud, not just a general verification.

Procedure for Filing

Filing a stay application in a Commercial Court is a precise procedural task. Since the Commercial Courts Act, 2015 and the 2021 Arbitration Amendment overlap here, you must follow a “double-track” procedure: meeting the rigorous standards of arbitration law while adhering to the speed-focused timelines of the Commercial Court.

Here is the step-by-step procedure for filing a Section 36(3) stay application in 2026.

Step 1: Determine the Correct Forum

Under Section 10 of the Commercial Courts Act, the forum depends on the nature of the arbitration:

International Commercial Arbitration: File directly in the High Court (Commercial Division).
Domestic Arbitration: File in the Commercial Court at the District Judge level (if the “Specified Value” is above ₹3 Lakhs, though this threshold varies by state).

Step 2: Concurrent Filing (The 2-Application Rule)

In 2026, you cannot file a stay application in isolation. It must be linked to a challenge:

Primary Petition: File the Section 34 Petition to set aside the award.
Interlocutory Application (IA): File the Section 36(2) Application for stay as a separate IA within the Section 34 proceedings.
- Note: Filing Section 34 does not stay the award. If you don’t file the IA, the award-holder can begin seizing assets immediately.

Step 3: Drafting and Essential Enclosures

Your filing must include:

The Main Application: (As drafted in the previous step).
Affidavit in Support: A sworn statement by the authorized representative.
Certified Copy of the Award: Essential for the court to see the “Face of the Award.”
Statement of Assets: Often required by Commercial Courts in 2026 to determine the “security” amount.
The “Fraud Affidavit” (If seeking Unconditional Stay): If you are invoking the 2021 Amendment, you must file a specific affidavit detailing the prima facie evidence of fraud or corruption.

Step 4: Pre-Institution Mediation (Wait or Skip?)

While the Commercial Courts Act usually mandates mediation before a suit, Section 34 and 36 applications are exempt from Pre-Institution Mediation. You can go straight to court.

Step 5: The First Hearing & “Notice”

The “Regard to CPC” Rule: The judge will follow Order XLI Rule 5 of the CPC.
The Condition: Unless you prove fraud, the judge will typically grant a stay only on the condition that you deposit 50% to 100% of the award amount (or provide a Bank Guarantee) in court.
Caveat: Check if the Award Holder has filed a Caveat under Section 148A CPC. If they have, you cannot get an ex-parte (one-sided) stay; their lawyer must be heard first.

Procedural Workflow

Summary Checklist for Filing

Task	Requirement
Limitation	90 days from receipt of the award for Section 34.
Court Fees	Ad valorem or fixed, depending on the High Court’s specific rules.
Security	Be prepared to deposit the “Decretal Amount” in court immediately.
Fraud Proof	Must be “specific and pleaded” (per Popular Caterers 2025).

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