Hindustan Construction Company ... vs Union Of India

The Supreme Court examined the constitutional validity of Section 87 of the Arbitration and Conciliation Act, 1996, as amended by the 2019 Amendment Act, and the repeal of Section 26 of the 2015 Amendment Act. The Court held that the automatic stay provision under Section 34 of the Arbitration Act, 1996, creates undue hardship for petitioners like Hindustan Construction Company Limited, who face delays in recovering dues from government bodies. The Court emphasized the need for a balanced approach to ensure that legitimate claims are not unduly stalled, thereby impacting the operational viability of contractors.