Main Media English

Get Latest News, India News, World News at Main Media English

Support Us

‘Unstamped arbitration agreements are valid in law’, says SC’s latest ruling

IANS logo Reported By IANS |
Published On :

New Delhi, Dec 13 (IANS) The Supreme Court on Wednesday overruled its earlier decision laying down that an arbitration agreement would be invalid or void ab initio if the underlying contract was not stamped as per the relevant Stamp Act.

In an unanimous decision, a 7-judge Constitution Bench headed by CJI D.Y. Chandrachud said that non-stamping or insufficient stamping does not render an agreement void but merely makes it inadmissible in evidence.

Also Read Story

Empty chairs, forced attendance allegations cast shadow on INDIA bloc’s Delhi rally

Nagaland’s sole LS seat to witness triangular contest in 2024 polls

Odisha Crime Branch busts racket involved in Rs 1.04 cr fraud

IPL 2024: Under-pressure Mumbai Indians hope to shine in home comfort (Preview)

IPL 2024: Sai Sudharsan, David Miller star as clinical Gujarat beat Hyderabad by seven wickets

Viksit Bharat Ambassador meet-up: India is world’s 3rd largest start-up ecosystem today, says I&B Minister Anurag Thakur

Amit Shah chairs meeting of Lok Sabha core committees in Jaipur, holds roadshow in Sikar

IPL 2024: Ishant Sharma back as Delhi Capitals win toss, elect to bat against CSK

Viksit Bharat Ambassador Jaipur meet-up: Participants heap praise on the initiative

The Constitution Bench held that non-stamping or insufficient stamping of an agreement is a curable defect under Indian Stamp Act, 1899.

It added that to obligate courts to determine the issue of stamping of arbitration agreement at the pre-referral stage will defeat the objectives of the Arbitration and Conciliation Act, 1996.

In his separate concurring opinion, Justice Sanjiv Khanna held that inadequate or non-stamping of an arbitration agreement will not make it invalid.

In September this year, the Supreme Court had agreed to refer the issue to a 7-judge bench having regard to the larger ramifications of the decision rendered in the case of NN Global Mercantile Pvt Ltd vs. Indo Unique Flame Ltd & Ors.

In that case, a five-judge Constitution Bench in April this year had laid down by a ratio of 3:2 that non-stamped or insufficiently-stamped arbitration agreements are not enforceable in the eyes of law.

The majority opinion delivered had held that arbitration agreements not validated by Stamp Act would stand non est in law rendering them void or unenforceable in law.

On the other hand, two judges in their distinct minority judgments, had opined that stamp deficiency may be cured and unstamped arbitration agreements are valid at the pre-referral stage.

In view of the verdict delivered on Wednesday by the 7-judge bench, the above ratio stands overruled.



(This report is auto-generated from IANS news service. 'Main Media' holds no responsibility for its content.)

Get involved in bringing the ground realities of Seemanchal. Click the "Support Us" button to join our membership.

Support Us

Related News

Pawar vs Pawar: A fight for supremacy in Baramati

Rebel Wilson opens up on weight loss journey, says she’s an emotional eater

Shraddha Kapoor asks fans how they wasted 1st quarter of 2024

PM Modi virtually interacts with party workers in Varanasi

AIADMK will ally again with BJP after LS elections, says Chidambaram

PE-VC investments fall by 8 per cent to $6.2 billion in Q1

Cut! Mark Ronson’s role in Amy Winehouse biopic gets axed

Leave a Reply

Your email address will not be published. Required fields are marked *