Court Has Power To Issue Time Bound Directions To Collector Of Stamps To Decide On Unstamped Arbitration Agreements, Purpose Of Section 11(13) Of A&C Act Should Not Be Defeated: 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 the adjudication by the Collector under Section 40 of the Indian Stamp Act can be made time bound?

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 held where the Court deems it expedient to not take recourse to Section 35 of the Stamp Act and instead send the original of the impounded instrument to the concerned Collector, it shall be open for this Court to issue time bound directions to the concerned Collector to perform the adjudicatory functions in terms of the relevant provisions of the Stamp Act.

The Court also referred to Rule 16 of Chapter 1 of Delhi High Court (Original Side) Rules, 2018 which provides for inherent power of the High Court to observe that nothing shall limit the power of the Court to make such orders as may be necessary for the ends of justice, therefore, the Court thought it appropriate to issue time bound directions to the concerned Collector (Stamps), to ensure that the statutory mandate under Section 11(13) of the Act is not defeated.

Case Title: Spelndor Landbase Ltd v. Aparna Ashram Society

Citation: 2023 LiveLaw (Del) 768

Date: 22.08.2023

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