Bombay High Court: Non-stamping or Insufficient Stamping of Arbitration Agreement Must Be Raised Before Arbitrator

In a recent ruling, the Bombay High Court emphasized that issues pertaining to the non-stamping or insufficient stamping of an arbitration agreement must be brought before the arbitrator during the proceedings and cannot be raised subsequently. The court’s decision sheds light on the importance of addressing stamping-related concerns in a timely manner within the arbitration process.

The court’s stance underscores the significance of compliance with stamping requirements for arbitration agreements. Stamp duty is a crucial aspect of legal documentation in India, and failure to adhere to the stipulated stamping regulations can have far-reaching consequences, including the enforceability of arbitration agreements.

The ruling serves as a reminder to parties engaged in arbitration to thoroughly examine and ensure the proper stamping of their arbitration agreements at the outset of the proceedings. Any deficiency or omission in stamping should be rectified promptly to avoid potential complications later in the process.

Moreover, the decision reflects the court’s commitment to upholding the sanctity of arbitration agreements and the need for parties to adhere to procedural requirements. By stressing the importance of addressing stamping issues during arbitration proceedings, the Bombay High Court aims to streamline the dispute resolution process and prevent parties from exploiting such issues at a later stage.

In conclusion, this ruling serves as a noteworthy precedent, emphasizing the need for parties involved in arbitration to be vigilant about stamping compliance from the outset. It highlights the principle that issues related to non-stamping or insufficient stamping must be raised before the arbitrator during the proceedings and cannot be raised subsequently, ensuring a smoother and more efficient arbitration process.