CONUNDRUM REGARDING LEGALITY OF UNSTAMPED ARBITRATION AGREEMENT 2 0

Abstract

In the vast realm of Alternative Dispute Resolution (ADR), arbitration quite profoundly stands out as an expeditious tool to untangle knotty litigations that traditionally shatter through our court corridors. One shall and must be reminded of the profound and imperative implications of the Arbitration and Conciliation Act, 1996, which, in its wisdom, heralded an era where courts would step back, letting arbitration flourish. Yet, it's impossible to overlook a peculiar quandary that seems to exist in every arena, this paper revolves around scenario, what happens when an arbitration agreement is tarnished by the blot of being unstamped or inadequately stamped? While one must not overlook the tip of the iceberg of the honoured Indian Stamp Act of 1899, which meticulously deals with the stamp duty and penalty mechanism, one cannot shy away from noting its intricate, occasional, and cumbersome pathways. It is within the helm of possibilities, that the winds of legislative change might soon bring forth modifications, ensuring the two regimes – of arbitration and stamp duty – exist in a more harmonious ballet, free from unnecessary interruptions, and conundrums in the statutory matrix. This inquiry in this very paper seeks to delve deep, not just into the literal provisions, but also into the very spirit and ethos behind them, by channelling the judicial pulse and understanding the rich tapestry of judgments that have grappled with this question.