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DELHI HIGH COURT
SANJEEV NARULA
Alexis Global Pvt. Ltd. – Appellant
Versus
Oma Living Pvt. Ltd. – Respondent
| Table of Content |
|---|
| 1. arbitration petition filed under section 11. (Para 1) |
| 2. respondent's objections on maintainability due to stamping issues. (Para 2) |
| 3. court's analysis on stamping requirements for arbitration. (Para 3 , 4 , 5 , 6 , 7 , 8 , 9) |
| 4. decision on the respondent's stamp duty objection. (Para 10) |
| 5. petition allowed and appointment of sole arbitrator. (Para 11 , 12 , 13 , 14 , 15) |
JUDGMENT
[VIA HYBRID MODE]
Sanjeev Narula, J. (Oral)--The present petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 [hereinafter, `the Act'], seeking appointment of a Sole Arbitrator for adjudication of disputes arising out of/pertaining to a `Service Agreement' dated 05th December, 2018 which contains an arbitration clause.
2. The Respondent does not dispute the existence of the arbitration agreement, but opposes the maintainability of the present petition, primarily on the ground that the Service Agreement is not sufficiently stamped as per the provisions of the Indian Stamp Act, 1899. In this regard, counsel for the Respondent submits that although, he is aware that this Court in IMZ Corporate Pvt. Ltd. v. MSD Telematics, 2021 SCC OnLine Del 3016 has take
An arbitration agreement's enforceability is independent of the underlying contract's validity, allowing disputes to proceed even with questions of insufficient stamping.
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.
Appointment of Sole Arbitrator – Any concerns of non-stamping or under stamping would not affect validity of arbitration agreement.
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.
Point of law : Arbitration - Whether the stamp duty so paid is insufficient or appropriate is a question that may be gone into at a later stage; Supreme Court would not review or go into this aspect ....
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