True Or Certified Copy Of The Original Arbitration Agreement Can Be Filed When The Issue Of Stamp Duty Is Not Disputed: Delhi High Court

The bench of Justice Sachin Datta gave much needed clarity on several important questions of law that arose in view of the decision rendered by the Constitutional Bench of the Apex Court in N.N. Global. Inter alia, the Court had framed the issue that whether it is incumbent on the petitioner, in a petition filed under Section 11 of the Arbitration and Conciliation Act, 1996, to file the original of the duly stamped arbitration agreement/contract or whether it would suffice for a 'true copy' thereof to be filed?

The Court had appointed Mr. Saket Sikri and Mr. Shashank Garg as amicus curiae to assist the Court in determining the issue at hand. The Court observed that what is liable to be impounded under Section 33 of the Stamp Act, is the original of the concerned agreement, which alone is to be treated as an instrument under Section 2(14) of the Stamp Act. Further it observed that in N.N. Global, the Supreme Court has observed that if a certified copy of the agreement is filed along with the petition under Section 11 of Act, it must necessarily declare the stamp, which has been paid in regard to the original.

The Court held that it is incumbent upon the petitioner who files a petition under Section 11 of the Act, on the basis of an unstamped/ insufficiently stamped arbitration agreement, to file the original instrument as executed. However, when the arbitration agreement is duly stamped, filing of the original instrument can be obviated provided the true copy or certified copy thereof clearly indicates that it has been duly and properly stamped and it is also accompanied by a clear and cogent statement to that effect in the petition filed under Section 11 of the Act.

The Court further held that if at any stage, when an issue arises as to sufficiency of stamping, it would be open for the Court to require the concerned party who has possession of the original agreement to file the same in Court. Accordingly, the Court held that the true or certified copy of the agreement containing the arbitration agreement would be sufficient for the purpose of Section 11 petition when on the face of it, the same is duly stamped and a statement to this effect is made in the petition under Section 11 of the Act, and the same is not controverted by the opposite party.

Case Title: Spelndor Landbase Ltd v. Aparna Ashram Society

Citation: 2023 LiveLaw (Del) 732

Date: 22.08.2023

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