Calcutta HC stays operation of arbitration award of Rs 1,301 cr against SER

The Calcutta High Court on Tuesday granted an unconditional stay on the operation of an arbitration award from South Eastern Railway to Rashmi Metaliks Limited, a private company, to the tune of Rs 1,301 crore. The court also directed the Ministry of Finance to immediately constitute a multi-member high-level enquiry committee headed by a secretary to the Government of India level rank officer to inquire into the conduct of the Railways and its officials (both serving and retired) and the other stakeholders in the matter.

“This court grants an unconditional stay on the operation of the arbitral award dated May 10, 2021, read with the corrections order dated August 18, 2021, pending disposal of the challenge under Section 34 of the Arbitration and Conciliation Act, 1996,” Justice Shekhar B Saraf directed.