Case Law Details
Drooshba Fabricators Vs Indure Private Limited (Delhi High Court)
Held that there is no dispute that the work order was issued by the respondent but stamp duty on the same is not paid. Accordingly, arbitration clause would be non-existent in law and unenforceable till stamp duty is adjudicated and paid.
Facts-
Vide the present petition u/s 11 of the Arbitration & Conciliation Act 1996, the petitioner seeks appointment of an arbitrator to adjudicate upon the disputes that are stated to have arisen with the respondent from Work Order dated 04.12.2012.
The respondent mainly objected that that the work order on which the petitioner has placed reliance has “not been duly stamped”. It is accordingly contended, that the work order requires to be impounded by the court; and that since an agreement only becomes a contract if it is enforceable by law, and being unstamped, the work order cannot be enforced, and therefore, the arbitration clause contained therein is also not enforceable. In this regard the respondent has drawn attention to the provisions of sections 11 (6A) and 7 of the A&C Act and to section 2(h) of the Indian Contract Act, 1872 to submit, that if an agreement is not enforceable in law, an arbitration clause contained therein is also not enforceable.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
