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IN THE HIGH COURT OF JUDICATURE AT ALLAHABAD
ARINDAM SINHA, YOGENDRA KUMAR SRIVASTAVA
Kaleshwari Power Products Private Limited – Appellant
Versus
State of U.P. – Respondent
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,
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.
The executing court lacks authority to impose penalties or demand payment of stamp duty on arbitral awards until appeal procedures conclude, emphasizing that such authority lies with designated autho....
The court established that the stamp duty on an arbitral award is to be assessed based on the provisions in effect at the time the award was signed, and that penalties for insufficient stamping canno....
The main legal point established in the judgment is that a xerox copy of an award is not considered an 'instrument' under the Indian Stamp Act and, therefore, cannot be impounded. Additionally, the l....
Section 31 of 1996 Act pertains to form and contents of arbitral award.
An arbitral award is equated to a decree for enforcement but is not subject to stamp duty under the Karnataka Stamp Act, as it does not pertain to tangible property.
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.
An arbitral award remains valid despite insufficient stamping; however, limitations under Section 34(3) of the A&C Act must be adhered to, and delay beyond the specified period cannot be condoned.
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