Arbitration Clause In Unstamped Agreements Enforceable? CJI Says Curative Petition Will Be Heard Soon, Seeks Assistance Of Specialised Lawyers
Live LawThe Supreme Court on Wednesday said that it will soon hear the curative petition on the issue whether that unstamped/insufficiently stamped arbitration agreements are unenforceable. Chief Justice of India DY Chandrachud, who was presiding over a 5-judge bench, said that the curative petition might be heard next week. The bench, also comprising Justice Hrishikesh Roy, Justice PS Narasimha, Justice Pankaj Mithal, and Justice Manoj Misra, had convened to hear a reference on another issue relating to the Arbitration and Conciliation Act 1996 - whether a person, who is ineligible to be appointed as an arbitrator, can appoint an arbitrator. In the Constitution bench judgement, Justice Joseph in concurrence with Justice Bose and Justice Ravikumar had decided that "an instrument which is exigible to stamp duty may contain an arbitration clause and which is not stamped cannot be said to be a contract enforceable in law within the meaning of S. 2 of the Contract Act and is not enforceable under S 2 of the Contract Act”.