Non-Payment/Insufficiency Of Stamp Duty Cannot Render The Arbitration Agreement Invalid: Delhi High Court
2 years, 6 months ago

Non-Payment/Insufficiency Of Stamp Duty Cannot Render The Arbitration Agreement Invalid: Delhi High Court

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The High Court of Delhi has held that non-payment or insufficiency of stamp duty on the underlying agreement cannot render the arbitration clause invalid. The Court further held that the requirement of pre-arbitral steps in the form of negotiation/conciliation would stand satisfied when the petitioner issues several notices to amicably settle the dispute, however, no response comes from the respondent. Global and Intercontinental Hotels has held that non-payment of stamp duty does not invalidate the arbitration clause, therefore, the courts at the stage of appointing an arbitrator cannot refuse to exercise jurisdiction on this ground. Analysis by the Court The Court held that non-payment or insufficiency of stamp duty on the underlying agreement cannot render the arbitration clause invalid.

History of this topic

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