The Interplay between the Arbitration and Conciliation Act, 1996 and the Indian Stamp Act, 1899
The interplay between the Arbitration and Conciliation Act, 1996 and the Indian Stamp Act, 1899 has been a subject of legal ambiguity, particularly regarding the enforceability of arbitration agreements in unstamped or insufficiently stamped contracts. The Supreme Court’s recent decision in In Re: Interplay Between Arbitration Agreements under the Arbitration And Conciliation Act 1996 And The Indian Stamp Act 1899 has provided clarity by harmonizing these statutes. The Court ruled that non-stamping does not render arbitration agreements void ab initio but only inadmissible as evidence until stamp duty is cured, ensuring such defects are curable under law.
