Case Law Details
Splendor Landbase Ltd Vs Aparna Ashram Society & ANR (Delhi High Court)
Conclusion: In present facts of the case, the Hon’ble High Court have given observations on the issue of unstamped arbitration agreement. It has been held that an arbitration agreement, which is unstamped, does not exist and an unstamped contract, containing an arbitration agreement, would not exist as it has no existence in law and it has been observed that such agreement would be impounded under Section 33 of the Stamp Act.
Facts: In present facts of the case, the issue came for consideration wherein petitions have been filed admittedly unstamped and/or incorporated in an instrument/agreement which is unstamped. The situation was to be dealt under the observations of the Judgment in the case of N.N. Global Mercantile (P) Ltd. v. Indo Unique Flame Ltd, (2023) 7 SCC 1, wherein it was observed as under:
“110. ………….. While we agree, the Court must be careful in selecting contracts where an arbitration agreement which is produced is not to be acted upon for the reason that it does not exist in law, all we hold is that an arbitration agreement, which is unstamped, does not exist and an unstamped contract, containing an arbitration agreement, would not exist as it has no existence in law.
141.1. In regard to an instrument, which is executed in India and which is liable to be stamped, then, stamping has to take place before or at the time of the execution of the instrument.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
