Supreme Court: Unstamped Agreements Inadmissible, Not Void; Stamping Irrelevant for Arbitration Act Determination

**Supreme Court Rules on Stamping of Agreements: What You Need to Know**

In a recent development, the Supreme Court’s 7-judge constitution bench has made a significant ruling regarding the stamping of agreements. The bench held that agreements that are not stamped are considered inadmissible under the stamp act, but they are not rendered void ab initio. This ruling has implications for both individuals and businesses involved in legal contracts.

The first key aspect of the judgment is that agreements lacking proper stamping are deemed inadmissible under the stamp act. This means that if an agreement is not properly stamped as required by law, it cannot be used as evidence in a court of law. However, the bench clarified that such agreements are not automatically considered void from the beginning. This interpretation provides some relief for parties involved in agreements that were not properly stamped, as it allows them to rectify the situation and enforce the agreement if necessary.

The second important point addressed by the Supreme Court is the relationship between stamping and the arbitration act. The bench stated that the aspect of stamping does not fall under the purview of determination under section 8 or 11 of the arbitration act. This clarification is crucial because it provides clarity on the role of stamping in arbitration proceedings. It means that the enforceability of an arbitration agreement is not affected by the lack of proper stamping, as long as the agreement is otherwise valid and enforceable.

The ruling has generated widespread interest and discussion among legal professionals and experts. Many have hailed it as a progressive and practical approach to the issue of stamping agreements. The decision strikes a balance between the need for proper stamping of documents and the recognition of the parties’ intention to enter into a valid agreement.

The Supreme Court’s ruling also brings attention to the importance of stamping agreements correctly. Stamping is a legal requirement that ensures the validity and enforceability of agreements. It serves as proof that the necessary duty has been paid on the document and that it has been registered with the appropriate authorities. Failure to comply with stamping requirements can have serious consequences, such as rendering the agreement inadmissible in court.

Legal experts advise individuals and businesses to be diligent in ensuring that their agreements are properly stamped. This may involve consulting with legal professionals to understand the stamp duty requirements and ensuring compliance with the stamp act. The Supreme Court’s ruling emphasizes the significance of adhering to these requirements to avoid any future legal complications.

In conclusion, the Supreme Court’s recent ruling regarding the stamping of agreements has clarified important aspects of the law. The bench has held that agreements lacking proper stamping are inadmissible under the stamp act but not void ab initio. Additionally, the ruling highlights that the aspect of stamping does not fall under the purview of determination under the arbitration act. It is crucial for individuals and businesses to understand and comply with stamp duty requirements to ensure the validity and enforceability of their agreements..

#BREAKING #SupremeCourt 7-judge constitution bench holds that:

1. Agreement not stamped are inadmissible under stamp act but they are not rendered void ab initio

2. Aspect of stamping does not fall for determination under section 8 or 11 of arbitration act

3. Stamping or not… pic.twitter.com/cvygIRbn0G

— Bar & Bench (@barandbench) December 13, 2023

Source

@barandbench said #BREAKING #SupremeCourt 7-judge constitution bench holds that: 1. Agreement not stamped are inadmissible under stamp act but they are not rendered void ab initio 2. Aspect of stamping does not fall for determination under section 8 or 11 of arbitration act 3. Stamping or not… twitter.com/i/web/status/1…

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