31/May/2021, 9:13 AM, Authored by Hiroo Advani, Tariq Khan & Mahi Mehta
Nearly after a decade the Indian arbitration regime has come in consonance with the western world and settled the long due controversy on stamping of arbitration agreement. A Bench comprising of Dr Justice D.Y. Chandrachud, Justice Indu Malhotra and Justice Indira Banerjee in N.N. Global Mercantile (P) Ltd. v. Indo Unique Flame Ltd. has held that since the arbitration agreement is an independent agreement between the parties, and is not chargeable to payment of stamp duty, the non-payment of stamp duty on the commercial contract, would not invalidate the arbitration clause, or render it unenforceable, since it has an independent existence of its own.