The seven-judge bench overturned a previous judgement to rule that unstamped or partially stamped arbitration agreements are enforceable by law. This decision has removed the ambiguity surrounding stamping of arbitration agreements.
On December 13, the Supreme Court ruled that arbitration clauses in unstamped or inadequately stamped agreements were enforceable. In doing so, the Court overruled the judgment rendered by a 5-judge.
A seven-judge bench of the Supreme Court on Wednesday (December 13) ruled that arbitration clauses in unstamped or inadequately stamped agreements are enforceable. Insufficiency of stamping does not.
The seven-judge Bench orally expressed its reservations with the decision of the five-judge Bench in NN Global, saying that there were exhaustive limits on judicial intervention in such matters.
A seven-judge bench expressed its doubt on the correctness of a Supreme Court ruling in April that held an arbitration clause is void and not enforceable in law if the agreement is unstamped or insufficiently stamped | Latest News India