Research at NDA
June 18, 2019
Stamping of the underlying Contract for a valid Arbitration clause - an 'existential' crisis
This article was originally published in the ICC India Arbitration Newsletter ( Issue 4 )
When the Arbitration & Conciliation Act, 1996 (Act) was amended in 2015, insertion of Section 11(6A) limited the scope of court inquiry to only the ‘existence’ of an arbitration agreement while entertaining an application for appointment of an arbitrator. Further, insertion of Section 11(13) provided a strict time frame for disposal of such applications. The objective behind such amendments was to expedite the arbitral process in India, historically prone to severe delay. Arbitration applications, even for simpliciter appointment of arbitrators, languish in courts for years.
In what may just be a case of one step forward and two steps back, the Supreme Court of India in a recent decision raked up an old issue concerning the validity of an arbitration agreement in an unstamped document by holding that a court cannot appoint an arbitrator under Section 11 of the Act when the contract containing the arbitration clause is insufficiently stamped.
This article analyzes the evolution of the law prior to this decision, what it means for applications such as those seeking interim reliefs, and the decision’s possible impact on the recent progress made by the judiciary as well as the legislature in minimizing court interference.
To access the article, please click here.
Disclaimer
The contents of this hotline should
not be construed as legal opinion. View detailed disclaimer.
This hotline does not constitute a
legal opinion and may contain information generated
using various artificial intelligence (AI) tools or
assistants, including but not limited to our in-house
tool,
NaiDA. We strive to ensure the highest quality and
accuracy of our content and services. Nishith Desai
Associates is committed to the responsible use of AI
tools, maintaining client confidentiality, and adhering
to strict data protection policies to safeguard your
information.
This hotline provides general information
existing at the time of preparation. The Hotline is
intended as a news update and Nishith Desai Associates
neither assumes nor accepts any responsibility for any
loss arising to any person acting or refraining from
acting as a result of any material contained in this
Hotline. It is recommended that professional advice
be taken based on the specific facts and circumstances.
This hotline does not substitute the need to refer to
the original pronouncements.
This is not a spam email. You have
received this email because you have either requested
for it or someone must have suggested your name. Since
India has no anti-spamming law, we refer to the US directive,
which states that a email cannot be considered spam
if it contains the sender's contact information, which
this email does. In case this email doesn't concern
you, please
unsubscribe from mailing list.
|