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MANISH PITALE
Noble Construction – Appellant
Versus
Nav-ajantha Co-op Housing Society Ltd – Respondent
JUDGMENT
1. By this petition, filed under Sec. 11 of the Arbitration and Conciliation Act, 1996, the petitioner is seeking appointment of an arbitrator, claiming that there is an arbitration agreement between the parties.
2. The present petition is opposed on various grounds on behalf of the respondent, interalia claiming that the arbitration clause itself is vague and that therefore, the petition ought not to proceed further. It is also contended on behalf of the respondent that the document which contained arbitration clause is not sufficiently stamped and that therefore, this Court may not proceed to consider the prayers made in the present petition.
3. For the present, this Court is not going into the question of the nature of the arbitration clause, but the question of stamp duty being deficient needs to be considered.
4. The learned counsel for the rival parties have referred to various judgments and orders in that light. This Court is of the opinion that the Supreme Court in the case of N. N. Global Mercantile Private Limited Vs. Indo Unique Flame Limited and Ors.,(2021) 4 SCC 379 has deliberated on the aforesaid issue and certain conclusions have been reached. Apart from render
The central legal point established in the judgment is the interpretation of the steps to be taken under Sec. 11 of the Arbitration and Conciliation Act, 1996 when the question of stamp duty arises, ....
Non-payment of stamp duty on the substantive contract does not invalidate the arbitration agreement.
An arbitration agreement's enforceability is independent of the underlying contract's validity, allowing disputes to proceed even with questions of insufficient stamping.
The main legal point established is the mandatory impounding of unstamped arbitration agreements and the delineation of the procedure to be followed in dealing with such agreements.
The distinction between non-payment and insufficiency of stamp duty, and the need to leave the determination of insufficiency to the arbitrator.
Non-payment of stamp duty on the commercial contract would not invalidate the arbitration agreement.
Appointment of Sole Arbitrator – Any concerns of non-stamping or under stamping would not affect validity of arbitration agreement.
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