Tag: Insufficiently Stamped Arbitration Agreement

In the past, the Supreme Court has examined what would transpire in the event an arbitration agreement was not duly stamped. The Supreme Court, in the case of M/S Sms Tea Estates P.Ltd v. M/S Chandmari Tea Co. P.Ltd (“SMS Tea Estate Decision”), when examining an application under Section 11 of the Arbitration and Conciliation Act, 1996 (“Act”) held that, a court before admitting any contract into evidence or acting upon the contract, needs to examine whether the contract has been duly stamped. ......

The theory of separability for arbitration agreements has been developed over time. It has been well recognized in India and other jurisdictions that an arbitration clause in a contract is an agreement independent of the contract executed between the parties. This theory of separability of an arbitration agreement has well elucidated by the Supreme Court of India in the case of M/S Sms Tea Estates P.Ltd v. M/S Chandmari Tea Co. P.Ltd...