Validity Of An Arbitration Agreement In An Unstamped Agreement: A Step Forward
3/Feb/2021, 12:50 PM, Authored by Hiroo Advani & Mahi Mehta
The Apex Court on 11 January, 2021 took a giant progressive leap towards developing a more liberal arbitration regime in the country by holding that non-payment of stamp duty would not invalidate the arbitration agreement. A bench comprising of Hon’ble Dr. Justice D.Y. Chandrachud, Justice Indu Malhotra and Justice Indira Banerjee in the matter of N.N. Global Mercantile Pvt. Ltd v. Indo Unique Flame Ltd. & Others1 has interestingly referred the issue ‘whether non-payment of Stamp duty on Commercial Contract will invalidate an Arbitration Agreement’ to be authoritatively settled by a Constitution Bench.