Validity Of Agreement Without Stamp Paper

13 Okt Validity Of Agreement Without Stamp Paper

It is obvious that these processes increase and delay processes in litigation and additional business costs, so it is always advisable to enter into agreements on buffer paper by paying the required tax. The respondent referred to sections 8, 16 and 45 of the 1996 Act and argued that the purpose of the 2015 Act, when Section 11(6A) was introduced, was that the purpose of the tribunal, as determined by a Section 11 application, was to examine the “existence” of an arbitration agreement and no longer its “validity”, a limitation. This has been supported by the argument that an arbitration agreement is independent of the agreement in which it is contained and, as long as the arbitration agreement is in writing and therefore there is indeed the same “existence”, the tribunal hearing the section 11 claim should appoint an arbitrator and leave all other preliminary issues to the arbitrator. It has also been argued that the Indian Stamp Act/Maharashtra Stamp Act are tax laws that aim to collect income and, if at all, will go to the “validity” of the arbitration agreement and not to its “existence”. 3. However, there is no harm in agreeing on an Rs.10 stamp document and having it certified notarized by 2 witnesses after signing. In addition, the execution of an agreement on a stamp document is, whenever such agreements are to be executed, is understandably cumbersome and therefore impractical. In the present case, the Supreme Court also considered SBP & Co and decided that section 16 of the 1996 Act could not be used to assert that an arbitration agreement had a stand-alone existence and, as such, apply to the applications referred to in section 11. The Indian Stamp Act 1899 deals with the stamp of agreements/documents in India. The stamping of agreements and documents is desirable, as it guarantees legality and validity, third-party effectiveness and admissibility before the courts, since such agreements can be registered under the Indian Registration Act 1908, which in turn guarantees their applicability. The trade agreement format includes different types of trade agreements based on specific trade requirements and negotiations between the parties….