Stay Order

A stay order is a form of interim relief granted by courts to maintain the status quo or prevent irreparable harm pending the final adjudication of a matter. It can be granted at various stages: stay of proceedings in a pending suit, stay of execution of a decree, or stay of operation of a judgment or order during appeal or revision.

Under Order XLI Rule 5 of CPC, the appellate court may stay execution of the decree appealed from. The court granting stay must record reasons and may impose conditions such as deposit of decretal amount or furnishing of security. Stay orders are typically granted for a limited period and must be extended periodically.

The Supreme Court in various judgments has emphasized that stay orders should not be granted mechanically and should be time-bound. Blanket stay orders without time limits have been deprecated. The court must balance the interests of both parties and consider factors like prima facie case, balance of convenience, and whether the applicant will suffer irreparable loss if stay is not granted.