An Arbitral Award Cannot Be Set Aside Merely On The Ground Of An Insufficiently Stamped Arbitration Agreement

AN ARBITRAL AWARD CANNOT BE SET ASIDE MERELY ON THE GROUND OF AN INSUFFICIENTLY STAMPED ARBITRATION AGREEMENT: ARG OUTLIER MEDIA PVT LTD v HT MEDIA LTD¹

Date: 29 August 2023

The Delhi High Court has held that the jurisdiction of the Court hearing a challenge under §34 of the Arbitration and Conciliation Act, 1996 is limited, and contravention of a statute that is not linked to public policy or public interest cannot be a ground to set aside an arbitral award.

Brief Facts

ARG Outlier challenged an award in favour of HT Media inter alia on the ground that the agreement containing the arbitration clause was not sufficiently stamped.

It was contended that in view of the decision of the Constitution Bench of the Supreme Court in NN Global Mercantile v Indo Unique Flame Ltd², an agreement not properly stamped cannot be admitted in evidence. ARG Outlier accordingly argued that until stamp duty and an appropriate penalty had been paid, the award could not be