Instrument Containing An Arbitration Clause Cannot Be Relied Upon Unless It Is Duly Stamped

A three Judge Bench of the Supreme Court of India in its recent decision in M/s. Dharmaratnakara Rai Bahadur Arcot Narainswamy Mudliar Chattram & Other Charities & Ors. v. M/s. Bhaskar Raju & Brothers & Ors. has reiterated that an instrument containing an arbitration clause cannot be enforced for providing reliefs under Section 11(6) of the Arbitration and Conciliation Act, 1996 unless the same is duly stamped in accordance with law.

FACTS:

The Appellant No. 1, a registered Charitable Trust, intended to develop the land owned by it. The Respondent No. 1 offered to develop the said property, pursuant to which certain negotiations took place between the parties and a lease deed was executed between the Appellant No. 1 Trust and the Respondent No. 1 lessee on 31^st May 1996. Thereafter, another lease deed dated 12^th March 1997 was executed between the same parties.