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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
M.NAGAPRASANNA
State of Karnataka – Appellant
Versus
Siddharth Infotech Pvt. Ltd. – Respondent
ORDER :
1. The petitioner/State of Karnataka-Judgment Debtor No.1 is before this Court calling in question an order dated 03-07-2025 passed by the LXXXII Additional City Civil and Sessions Judge, Commercial Court, Bengaluru on I.A.No.7 in Commercial Execution No.716 pf 2023, whereby the application filed by the State under Section 33 of the Karnataka Stamp Act, 1957 (‘Karnataka Stamp Act’ for short) is rejected. The application filed was to impose stamp duty and penalty upon the arbitral award that was sought to be executed by the decree-holder.
2. Facts, in brief, germane are as follows:-
2.1. The petitioner is the State of Karnataka, in particular the Department of Education. The 1st respondent is the decree-holder one M/s Siddharth Infotech Private Limited. Dispute arose between the two on certain payments that were to be made by the State for a contract entered into between the State and the decree-holder. The matter was referred to arbitration. The Arbitrator answering the reference passes an award on 18-05-2022 in favour of the decree-holder awarding Rs. 178,98,38,525/-. The judgment-debtor/petitioner files a petition under Section 34 of the Arbitration and Conciliation Act, 199
The executing court lacks authority to impose penalties or demand payment of stamp duty on arbitral awards until appeal procedures conclude, emphasizing that such authority lies with designated autho....
The court established that the stamp duty on an arbitral award is to be assessed based on the provisions in effect at the time the award was signed, and that penalties for insufficient stamping canno....
An arbitral award is equated to a decree for enforcement but is not subject to stamp duty under the Karnataka Stamp Act, as it does not pertain to tangible property.
The main legal point established in the judgment is that a xerox copy of an award is not considered an 'instrument' under the Indian Stamp Act and, therefore, cannot be impounded. Additionally, the l....
Section 23 of Stamp Act makes it clear that where interest is expressly made payable, the instrument shall not be chargeable with duty higher than that with which it would have been chargeable if the....
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