Arbitration and Conciliation Act, 1996: s. 11(4), 11(6) and
11(6A) – Appointment of arbitrator – Arbitration clause contained
in a contract not stamped – Effect of – Held: When Supreme Court
or the High Court considers an application u/s. 11(4) to 11(6), and
comes across an arbitration clause in an agreement or conveyance
which is unstamped, the Court must impound the instrument which
is unstamped and hand it over to the authority under the Stamp Act,
who would decide issues qua payment of stamp duty and penalty as
expeditiously as possible, within the stipulated period – As soon as
stamp duty and penalty are paid on the instrument, any of the parties
can bring the instrument to the notice of the Court, which would
then dispose of the application u/s. 11 – Harmonious construction
is to be given to the provisions of the Stamp Act and s. 11(13) of the
1996 Act by which, if it is possible, both provisions ought to be
subserved – Furthermore, introduction of s. 11(6A) does not, in any
manner, deal with or get over the basis of the judgment in SMS Tea
Estates’s case that the mandatory provisions contained in the Stamp
Act are applicable to judicial authorities acting u/s. 11, continues
to apply even after the amendment of s. 11(6A) – On facts, the
arbitration clause contained in the sub-contract would not “exist”
as a matter of law until the sub-contract is duly stamped – Order
passed by the High Court allowing the application u/s. for
appointment of the arbitrator, to adjudicate upon the dispute, even
though the sub-contract was unstamped, is set aside and matter is
remitted back to the High Court – Maharashtra Stamp Act, 1958 –
ss. 33 and 34.