Introduction It is common understanding that an order of a higher Court staying the decision of a lower Court brings to a halt the operation of the order passed by the lower authority. But does that mean that what has been decided in that original order can be undone owing to the stay ordered by an appellate authority? This article seeks to decipher the legal position to this regard wherein the two consequential issues are (i) what is the consequence of an order of stay passed by a higher Court in appellate proceedings? and (ii) does the stay order reverse the legal position arising out of the stayed order or it simply keeps the operation of the stayed order in abeyance? Judicial Interpretation The first and pivotal reference point for ascertaining the effect and consequences of a stay order is the decision of the Supreme Court in Shree Chamundi Mopeds1-2. In that case the appell ....