Stamp Duty Payable On Arbitration Agreement

The Supreme Court of India (Supreme Court) has, in its recent judgment in Garware Walls Ropes Ltd. v Coastal Marine Constructions & Engineering Ltd. in Civil Appendix No. 3631/2019, resulting from SLP (C) 9213/2018, on 10 April 2019, a judgment of Bombay High Court, Coastal Marine Constructions & Engineering Ltd. v Garware Walls Ropes Ltd. in Arbitration Petition No. 24/2017 (HC judgment). and found that an arbitration clause in an agreement that is not stamped by law cannot enter into force if and until the agreement is properly stamped, that is. The full stamp duty on this Convention, as provided for by law, has been paid. The Supreme Court has also ruled that when a court is asked to rule on an application for the appointment of an arbitrator, in accordance with section 11 of the Arbitration and Conciliation Act, 1996 on the basis of an arbitration clause in an agreement that is not or is misstamped, the court must first refer the matter to the agreement.

Send it to the competent authorities for the payment of stamp duty and fine (if any), for non-payment of stamp duty during the first performance of the contract and continue the request only after payment of these taxes and penalties. The amending law made many changes, including the insertion of Article 11(6A). Prior to the insertion of Article 11(6A), the powers conferred under Article 11 were extremely extensive. It is proven that the appointment of an arbitrator is not only an administrative authority, but a power of judge.

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