Introduction
As a matter of general practice, the parties, upon reaching a
consensus, reduce the terms of their understanding in writing by
way of an agreement, which govern the relationship between the
parties and set out their rights and obligations. As litigation is
a timeconsuming procedure, parties often mutually agree to resolve
their disputes through recognized Alternate Dispute Resolution
mechanisms, like Arbitration. Thus, most of the agreements have a
specific clause related to arbitration.
However, parties often fail to adequately stamp the Agreement in
terms of the Stamp Act(s) governing such agreement. Such failure
renders the Agreement unenforceable.
This led to a controversy regarding the powers of a Court under
Section 9 and 11 of the Arbitration and Conciliation Act, 1996
("Arbitration Act") with respect to such
unstamped / inadequately stamped agreements. This article makes an
attempt to analyse the recent Supreme Court and Bombay High
