Stamp Duty Ruling to Strengthen Arbitration Agreements in India

In a landmark judgment, the Supreme Court of India has strengthened arbitration agreements by ruling that unstamped documents containing such clauses will not be considered void.

The Court unanimously overturned a previous 5-judge bench decision in NN Global Mercantile Pvt Ltd

In the leading 213-page judgement, the bench comprehensively analyzed the provisions of both statutes and relevant case laws.

The Court underlined the doctrine of competence-competence in empowering arbitrators to rule on their own jurisdiction.

In his concurring opinion, Justice Khanna elaborated on party autonomy and separability being the cornerstones of arbitration.

She said it would boost FDI confidence since investors prefer arbitration over unwieldy court proceedings.