The requirement for stamp duty on an arbitral award copy is invalid as it only applies at the enforcement stage, not prior to obtaining the copy of the award.

JUDGMENT :

Arindam Sinha, J.

1. Petitioner says it is registered as a micro/small enterprises under provisions in Micro, Small and Medium Enterprises Development Act, 2006. It made supplies to various departments of Bharat Sanchar Nigam Limited (BSNL). Bills for the supplies remained unpaid. It took steps under provisions in section 18 of said Act. The issue of non-payment resulted in an arbitration reference and award stood made.

2. Mr. Sudhanshu Kumar, learned advocate appearing on behalf of st petitioner draws attention to writing dated 21 March, 2025, in response to his client's requisition for copy of the award. By said writing his client was informed that stamp duty needs to be paid for the award copy to be made available. This requirement cannot be sustained because section 31 in Arbitration and Conciliation Act, 1996 provides for form of arbitral award, which is applicable in an arbitration reference by operation of provisions in the Act of 2006. Section 36 in the 1996 Act provides for enforcement. He relies on judgment of the Supreme Court in Appeal (Civil) 7940-7942 of 2001 ( M. Anasuya Devi and Anr. vs. M. Manik th Reddy and Ors. ) dealt with on judgment dated 16 October, 2003 to submit, law declared was, the question as to whether the award is required to be stamped and registered would be relevant, only when a party files the award for its enforcement under section 36 in the Act of 1996. Relied upon paragraph in 'JUDIS.NIC.IN' print is reproduced below.

"After we heard the matter, we are of the view that in the present case this issue was not required to be gone into at the stage of proceedings under Section 34 of the Act. In fact, this issue was pre-mature at that stage. Section 34 of the Act provides for setting aside of the Award on the ground enumerated therein. It is not in dispute that an application for setting aside the Award would not lie on any other ground, which is not enumerated in Section 34 of the Act. The question as to whether the Award is required to be stamped and registered, would be relevant only when the parties would file the Award for its enforcement under Section 36 of the Act. It is at this stage the parties can raise objections regarding its admissibility on account of non-registration and non-stamping under Section 17 of the REGISTRATION ACT . In that view of the matter the exercise undertaken to decide the said issue by the Civil Court as also by the High Court was entirely an exercise in futility. The question whether an Award requires stamping and registration is within the ambit of Section 47 of the Code of Civil Procedure and not covered by Section 34 of the Act."

(emphasis supplied)

He submits, in the facts and circumstances his client has mounted vires challenge to clause (xii) under rule 6 in Uttar Pradesh State Micro and th Small Enterprises Facilitation Council Rules, 2006, notified on 19 January, 2007. The clause (xii) is reproduced below.

"6. ........................…

(xii) The Council shall make an Arbitral award in accordance with section 31 of the Arbitration and Conciliation Act 1996 and within the time specified in sub-section (5) of section 18 of the Act. The award shall be stamped in accordance with the relevant law in force. Copies of the award shall be made available within seven days of filing of any application.

(emphasis supplied)

3. Mr. Kumar submits, requirement by entry 12 in schedule I-B in Stamp Act, 1899 providing for the rules applicable in Uttar Pradesh cannot be basis for the requisition made on his client, to provide stamp duty for making the award available. The award has n