Interim Order 5

Order Details: COPY OF ORDER
Pdf Text: OMP (Comm.) No. 17/2025
Government of NCT of Delhi Vs. M/s Maa Bhagwati Associates
26.07.2025
Present: Sh. Zafar Abbas, Ld. Counsel for petitioner.
Ms. Rashi Jain, Ld. Counsel for respondent through VC.
Vakalatnama has been e-filed on behalf of the respondent.
One week time is granted to file reply, if any, to the petition under
Section 34 of Arbitration & Conciliation Act, 1996.
During the course of hearing it is found that the award in question has
been stamped with only for Rs.500/- stamp duty on the award amount i.e. around
Rs.52,00,000/- alongwith pre-suit interest which comes to around Rs.5,200/-. As
per Indian Stamp Delhi Amendment Act, 2001, stamp duty of 0.1% is payable
on such awards by the beneficiary Claimant/Award Holder. In so far as, it is a case
of under stamping, the award is non-actionable and consequently, non-executable.
It is unfortunate to observe that neither the Ld. Arbitrator who is said
to be a Retired Special Director General of PWD took pains to ensure that the
adequate stamp duty paid on the same nor the Award Holder took steps to pay the
stamp duty even though the petition under Section 36 of A&C Act, 1996 has
already been filed before Ld. District Judge, Commercial Court in Saket and a
warrant of attachment was issued.
As per Delhi High Court Rules and Procedures, it is duty of every
Court to ensure that there is no loss of revenue. The manner in which the loss of
around Rs.5,000/- was caused to the exchequer by the claimant contractor, PWD,
Department of NCT of Delhi and the Retired Special DG of PWD is deprecated in
strongest terms. The provisions of Indian Stamp Act, 1899 are mandatory and not
discretionary as provided under Delhi High Court Rules and Procedures
Chapter 4 Part D.
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The importance of adequate stamping of such contracts by the banks,
financial institutions or any entities/individuals was highlighted by Seven Judge
Constitution Bench of Hon’ble Supreme Court of India in Re: Interplay
Between Arbitration Agreements under The Arbitration & Conciliation Act,
1996 and Indian Stamp Act, 1899, 2023 Latest Caselaw 922 SC, decided on
13.12.2023, where it is mention that “agreements which are not stamped or are
inadequately stamped are inadmissible in evidence”.
Ld. Counsel for the respondent/Award Holder is directed to produce
original copy of Arbitral Award signed and delivered by Ld. Arbitrator under
Section 31 of A&C Act, 1996.
Now, to come up for arguments on Section 34 A&C Act, 1996
petition on 30.07.2025.
Next date of hearing is given as per convenience of parties.
(SURINDER S. RATHI)
District Judge
Commercial-11
Central District, THC,
Delhi/26.07.2025(P)
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