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SABYASACHI BHATTACHARYYA
Rithwik Projects Private Limited – Appellant
Versus
MBL Infrastructures Limited – Respondent
JUDGMENT :
1. The Court: The present application has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as, “the 1996 Act”) for reference to arbitration of the dispute which has arisen between the parties in connection with an Option Agreement dated October 18, 2010, as amended on July 29, 2011, which contains an arbitration clause.
2. Such contention is disputed by the respondent, inter alia, on the ground that the Agreement is insufficiently stamped. It is argued that as per Item No.5(b)(ii) of Schedule 1A of the West Bengal Amendment of the Indian Stamp Act, the stamp duty payable for the Option Agreement is at least above Rs.23,00,000/-, whereas the said Agreement has been recorded on a stamp paper of Rs.100/- only. In view of Section 38 of the Indian Stamp Act, 1899 (in brief, “the 1899 Act”) the court cannot refer the matter to arbitration. In such context, the learned Senior Advocate appearing for the respondent cites N.N. Global Mercantile Private Limited Vs. Indo Unique Flame Ltd. And others, reported at 2023 SCC OnLine SC 495.
3. Next, it is argued that the application is misconceived and bad for non-joinder of the Special P
Point of law: The Court by default would refer the matter when contentions relating to non-arbitrability are plainly arguable.
The Court by default would refer the matter when contentions relating to non-arbitrability are plainly arguable.
The court confirmed that the existence of an arbitration agreement is undisputed, and any claims regarding time-bar should be determined by the arbitral tribunal.
The court established that arbitration clauses should be interpreted to encompass all disputes arising from an agreement, reflecting the parties' intention to resolve issues through arbitration.
The initiation of arbitration is impermissible due to an existing moratorium that restrains all legal proceedings, including arbitration, until the related insolvency matters are resolved.
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