LANDMARK JUDGMENT OF Supreme Court OF INDIA in case titled 'Interplay Between Arbitration Agreements Under The Arbitration And Conciliation Act 1996 And The Indian Stamp Act 1899," 2023 INSC 1066 

On 13 December 2023, a bench comprising the Chief Justice of India, Dr D Y Chandrachud, Justice Sanjay Kishan Kaul, Justice Sanjiv Khanna, Justice B R Gavai, Justice Surya Kant, Justice J B Pardiwala, and Justice Manoj Misra unanimously held that arbitration clauses in unstamped or inadequately stamped agreements are enforceable. Through its judgment, the Court overruled its earlier holding in M/s N N Global Mercantile Pvt Ltd v M/s Indo Unique Flame Ltd & Ors, by which it had held the unenforceability of unstamped arbitration agreements. The 7 judge bench clarified the distinction between admissibility and enforceability, noting that although unstamped or inadequately stamped agreements are inadmissible in evidence under Section 35 of the Stamp Act, 1899, they are not void, void ab initio or unenforceable. The Court held that non-stamping or inadequate stamping is a curable defect. The bench reaffirmed the competence-competence doctrine, stating that objections related to stamping of the agreement fall under the arbitral tribunal’s jurisdiction and cannot be raised under Sections 8 or 11 of the Arbitration and Conciliation Act, 1996 before a court.

2023 Landmark Judgment: What Has Changed?

In 2023 INSC 1066, a 7-judge constitutional bench unanimously held that:

• An unstamped or inadequately stamped arbitration agreement is not void.

• It may be inadmissible in evidence, but it remains enforceable and valid.

• Stamping is a curable defect, not a jurisdictional bar.

• Courts cannot refuse arbitration referrals under Sections 8 or 11 of the Arbitration and Conciliation Act, 1996, on grounds of insufficient stamping.

• Such objections must be left to the arbitral tribunal to decide—reinforcing the doctrine of competence-competence.

Legal Implications for Businesses and Commercial Clients

This is a game-changer for all clients involved in:

• Commercial Contracts

• Vendor/Supplier Agreements

• Shareholder or JV Agreements

• Infrastructure and Construction Projects

• Technology Licensing Agreements

From now on:

• ✅ Parties can invoke arbitration swiftly without waiting for stamp adjudication.

• ✅ No more delays or dismissals at the court referral stage under Section 11.

• ✅ Enhances contractual certainty and reinforces India’s pro-arbitration stance.

Our Role: Trusted Legal Advisors in Arbitration & Commercial Disputes

At Pankaj Kumar & Co., located in Rohini, Delhi, we have been at the forefront of representing clients before the Delhi High Court, Supreme Court, and Arbitral Tribunals in:

• Section 11 Petitions

• Section 9 Interim Measures

• Section 34 Challenges to Awards

• Contractual Enforcement

• Business Dispute Resolution

As a reputed Arbitration Lawyer in Delhi, Advocate Pankaj Kumar ensures proactive advice and effective representation in commercial litigation and ADR (Alternate Dispute Resolution) strategies.

Why Choose Us?

• Experience in Delhi High Court, District Courts & Arbitration Forums

• Deep Understanding of Arbitration Law, Corporate Contracts & Commercial Remedies

• Trusted by Startups, SMEs, NRIs, and Corporates

• Tailored strategy for business dispute resolution

• Affordable & Transparent Legal Services

Need Expert Advice?

If you’re dealing with a business contract, commercial dispute, or arbitration issue, contact us today.

📍 Pankaj Kumar & Co.

🔹 Top Arbitration and Commercial Dispute Law Firm in Rohini, Delhi

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