Navigating Legal Landscapes: Stamping, Registration, And Arbitration Agreements
Experts suggested the practical implications of recent judgements on arbitration validity and stamping legislation
The impact of a Supreme Court ruling on stamping, registration, and arbitration agreements clarified that unstamped documents may be inadmissible but not necessarily invalid, alleviating concerns for businesses.
Sameer Jain, Founder and Managing Partner, PSL Advocates, addressed the key recommendations of the expert committee report on arbitration law. These recommendations are significant as they come from a collaborative effort involving stakeholders from various sectors, including industry, law firms, lawyers, and the government. The report covers a wide range of topics, from emergency arbitration to third-party funding (TPF) and MSME arbitration.
Arush Khanna, Managing Partner, Numen Law Offices, highlighted the importance of emergency arbitration and the proposed insertion of the 12th capital V, allowing institutions to appoint emergency arbitrators. He also discusses the recommendation to introduce TPF in India, emphasising the need for careful regulation to address confidentiality, conflict of interest, and other ethical considerations.
Shashank Garg, counsel and arbitrator, provided insights into the legal implications of third-party funding, citing the Tomorrow Sales case as a significant development. He underscored the importance of self-regulation in TPF and ongoing efforts by institutions to formulate rules in this area.
Sonal Kumar Singh, Managing Partner, AAS Partners, discussed the recent DMRC judgement, which clarified the validity of arbitration agreements in relation to stamping legislation. This judgement has practical implications for arbitration proceedings, providing clarity on the distinction between the inadmissibility and invalidity of unstamped agreements.
Payal Chawla, founder of JusContractus, mentioned the involvement in a legal matter and highlighted an interesting legal point regarding stamping and the validity of documents. She talked about the transition to discussing defective filings under Section 34 and the recent referral by the Delhi High Court. They pose a question about what constitutes non-est filings and their impact on timelines. The response suggested dividing the issue into two categories for clarity. Firstly, you must include the award; without it, the filing is considered non-existent. Secondly, the grounds for challenging the award must be clearly stated; omitting them also renders the filing non-existent.
Mehul Parti, Counsel, and C&M underlined the longstanding existence of the curative right. He explained that the Delhi Metro Rail Corporation (DMRC) merely utilised this legal recourse, which the Supreme Court deemed fitting for the specific circumstances.
Importantly, the Court clarified that its decision wouldn't set a precedent for future cases, acknowledging the unique nature of DMRC's situation. This illustrates the Court's discretion in handling exceptional cases without establishing broad legal precedent.
Divyam Agarwal, Partner, JSA, addressed the impact of a recent Supreme Court judgement on stamping, registration, and arbitration agreements. He talked about a ruling clarified that unstamped documents may be inadmissible but not necessarily invalid, easing concerns for businesses. However, practical challenges persist, such as arbitrators' role in addressing stamping issues. The conversation also touched on pending matters, like the Delhi High Court's inquiry into non-est filings, highlighting the need for procedural clarity in arbitration.
However, practical challenges remain, particularly regarding arbitrators' roles in addressing stamping issues.
Additionally, pending matters, such as the Delhi High Court's inquiry into non-est filings, underscore the need for procedural clarity in arbitration. Suggestions were made to categorise defective filings for better understanding, highlighting the importance of procedural clarity in arbitration law. Overall, recent judicial rulings aim to streamline dispute resolution processes, offering relief for businesses and stakeholders.
