Arbitration Clauses In Unstamped Agreements Are Enforceable: Supreme Court
Last Updated on December 13, 2023 by News Desk
The bench comprising Chief Justice of India DY Chandrachud, Justice Sanjay Kishan Kaul, Justice Sanjiv Khanna, Justice B R Gavai, Justice Surya Kant, Justice JB Pardiwala and Justice Manoj Misra passed the judgment in the case In Re Interplay Between Arbitration Agreements Under the Arbitration and Conciliation Act 1996 And The Indian Stamp Act 1899.
It has been decided by the court that,
- If the agreements are not stamped or are inadequately stamped, they are not void ab initio or unenforceable, in evidence they will be admissible.
- Such a situation becomes a curable defect
- The determination under section 8 or section 11 of an objection which has been raised about the stamping will not be allowed. The court must determine that whether there was the existence of the Arbitration Agreement or not
- Any objection concerning the stamping if raised will be under the ambit of the Arbitral Tribunal.
- The court overruled the decision in NN Global 2 and SMS Tea Estates
It was pointed out by the court that the objective of the Arbitration Act is to minimize the role of supervision to be played by the courts and if the determination concerning stamping will be done by the court then the main motive of the legislation will be defeated.
Case Title: In Re Interplay Between Arbitration Agreements Under The Arbitration And Conciliation Act 1996 And The Indian Stamp Act 1899 Curative Pet (C) No. 44/2023 In R.P.(C) No. 704/2021 In C.A. No. 1599/2020
Written By:- Shianjany Pradhan (SHIANJANYPRADHAN)
