The issue of stamping and executability of an Award should be determined at the execution stage, not under section 34 of the Arbitration and Conciliation Act, 1996.

JUDGMENT :

(Anubha Rawat Choudhary, J.)

This Appeal has been filed under section 13 of the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 read with section 37 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as “the Act of 1996”) challenging the judgment dated 23rd December 2019 passed by the learned District Judge-I-cum-Commercial Court, East Singhbhum, Jamshedpur in Arbitration Case No.07 of 2019 whereby the petition filed by the respondent under section 34 of the Act of 1996 has been allowed and the Award dated 29th April 2014 passed by the learned Arbitrator has been set aside on the ground that the Award was unsigned and not prepared on stamp paper and consequently invalid and legally not enforceable. As the Award was held to be not enforceable, the learned Commercial Court has refused to enter into the grounds touching upon the merits of the claims allowed and counter-claims disallowed by the learned Arbitrator.

Foundational facts

2. The background of the case is that the respondent issued a Notice Inviting Tender in relation to an irrigation project known as Suru Reservoir Project on a turnkey basis at an estimated cost of Rs.3088.375 lakhs. The appellant was declared a successful bidder and consequently, parties entered into an agreement vide agreement no. F207/2004-05 on 10th September 2004. In the midst of the execution of the work dispute arose between the parties and the claimant filed a petition under section 11 (6) of the Act of 1996 before this Court bearing Arbitration Application No. 46 of 2007, in which Hon’ble Justice S.B. Sinha, a former Judge of the Supreme Court of India, was appointed as sole Arbitrator. The arbitration proceeding was concluded after the submission of pleadings, and documents as well as the examination of oral witnesses by both the parties, and the Award was passed after hearing the parties.

3. The summary of the Award in connection with the claim and counter-claim has been mentioned in paragraph nos. 336 to 340 of the Award as under:

4. The learned Arbitrator has also awarded costs to the claimant and rejected the counter claims of the respondent in the following manner.

337. This Tribunal feels that the Respondent should also pay a sum of Rs.5,00,000/- to the Claimant by way of exemplary costs.

338. From the total amount of Claim, under Claim No. 4, 5 and 6,