Thereafter, the Constitution Bench recorded its conclusions in paragraph 224 as under:
224. The conclusions reached in this judgment are summarised below:
a. Agreements which are not stamped or are inadequately stamped are inadmissible in evidence Under Section 35 of the Stamp Act. Such agreements are not rendered void or void ab initio or unenforceable;
b. Non-stamping or inadequate stamping is a curable defect;
c. An objection as to stamping does not fall for determination Under Sections 8 or 11 of the Arbitration Act. The Court concerned must examine whether the arbitration agreement prima facie exists;
d. Any objections in relation to the stamping of the agreement fall within the ambit of the Arbitral Tribunal; and
e. The decision in N.N. Global (2)10 and SMS Tea Estates11 are overruled. Paras 22 and 29 of Garware Wall Ropes12 are overruled to that extent.
21. The learned Senior Advocate for the mine owner also urged that relegating the stamping objection to the post- award stage Under Section 34 of the A and C Act would compel the mine owner to endure prolonged and expensive arbitral proceedings merely to vindicate what he characterises as a mandatory fiscal objection going to the root of the agreement, while the remedy available Under Section 34 is too circumscribed to adequately address such a fundamental defect. This Court is unable to accept this submission, as it derives its force only if non-stamping or inadequate stamping of an agreement is treated as a fatal, jurisdictional infirmity that vitiates the agreement at its inception. That premise, however, no longer holds good in law. The Constitution Bench in Re: Interplay (supra), has unequivocally held that non- stamping or inadequate stamping of an arbitration agreement is merely a curable defect. In paragraph 48, it was held as under:
48. Section 35 of the Stamp Act is unambiguous. It stipulates, "No instrument chargeable with duty shall be admitted in evidence..." The term "admitted in evidence" refers to the admissibility of the instrument. Sub-section (2) of Section 42, too, states that an instrument in respect of which stamp-duty is paid and which is endorsed as such will be "admissible in evidence." The effect of not paying duty or paying an inadequate amount renders an instrument inadmissible and not void. Non-stamping or improper stamping does not result in the instrument becoming invalid. The Stamp Act does not render such an instrument void. The non-payment of stamp duty is accurately characterised as a curable defect. The Stamp Act itself provides for the manner in which the defect may be cured and sets out a detailed procedure for it. It bears mentioning that there is no procedure by which a void agreement can be 'cured'.
Hence, this Court drew a careful and fundamental distinction between the admissibility of an instrument in evidence and its validity and enforceability in law, holding that the scheme of the Stamp Act is concerned only with admissibility and mere non-stamping or inadequate stamping does not render an agreement void. The agreement survives non-stamping or insufficient stamping, and the defect can be cured by getting the agreement sufficiently stamped at any stage, whereupon it becomes admissible in the eyes of law. It is the arbitral tribunal that is empowered to deal with this issue in the first instance. The remedy of having the Tribunal satisfy itself on the question of stamping Under Section 16, with the award remaining open to challenge Under Section 34 at a later stage, is not inadequate. The apprehension of the mine owner, therefore, rests on a legal position that stands overruled.
IN THE SUPREME COURT OF INDIA
Civil Appeal No. 8218 of 2026
Decided On: 27.05.2026
Tarini Prasad Mohanty Vs. Sunflag Iron and Steel Company Limited
Hon'ble Judges/Coram:
J.K. Maheshwari and A.S. Chandurkar, JJ.
Author: A.S. Chandurkar, J.
Citation: 2026 INSC 566,MANU/SC/0573/2026
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