The Validity Of An Unstamped Arbitration Agreement: The NN Global Judgment

The Arbitration & Conciliation Act, 1996 (Arbitration Act) is a state-of-the art legislation based on the UNCITRAL Model Law on International Commercial Arbitration, 1985, and enforced with the objective of providing an alternative remedy to disputes in India. Being a well thought-out piece of legislation, the Act has been designed to preclude judicial scrutiny, except in certain limited circumstances, including where the existence of the arbitration agreement in itself, is put to question.

In any other case, the Act has been repeatedly upheld to hold a preceding position as compared to other laws. The exceptions to such rule, however, have also emerged, albeit at rare instances. The recent case of N.N. Global Mercantile Pvt. Ltd. vs Indo Unique Flame Limited & Ors.¹, was one such exception, where the court held the arbitration agreements to be subject to the applicability of the Indian Stamp Act, 1899 ('Stamp Act').