Arbitral Award – Indian Stamp Act – Powers of Executing Court
Agreement dated 29.6.2015 between the parties. The agreement prior to 2015 amendment empowered the Managing Director to nominate Arbitrator.
On 31.3.2017, Arbitral Award for Rs.2,03,600/- was passed in the arbitral proceedings initiated by the Respondent-Bank.
On 11.12.2018, the Respondent-Bank filed Execution Petition under Order 21 Rule 11(2) of CPC and Section 36 of the Arbitration and Conciliation Act, 1996, before the Court of Principal District Judge, Burhanpur.
The petitioner filed objection under Section 47 of CPC and Order 21 Rule 58 of the CPC and Section 35 of the Indian Stamp Act, 1989, on one of the grounds that it is not adequately stamped.
HELD that section 36(1) of the AA provides for execution of arbitral award. However, the said Act does not expressly lay down any legal requirement that mandates the parties to an arbitral agreement to pay stamp duty on an arbitral award. Section 17 of the Indian Stamp Act, 1989, as application of State of MP provides that the award shall be stamped before or at the time of execution. As per Section 2(12) of Stamp Act the date to quantify stamp duty on award / instrument is the date on which the instrument was signed. Therefore, the Executing Court ought to have decided whether the award is required to be stamped and registered.
Order dated 16.5.2024 of MP High Court at Jabalpur in Misc. Petition No.5538 of 2023 of Brajesh Kumar Pannalal s/o. Shri Pannalal And Indusind Bank Ltd
