Karnataka High Court: Penalties Under Stamp Act Not Applicable to Insufficiently Stamped Awards at Execution Stage

Case Title: Shakeel Pasha and Ors v. City Max HotelsCourt: Karnataka High CourtDate of Judgement: 28.07.2023

In a recent order, the Karnataka High Court has stated that penalties under the Karnataka Stamp Act, 1957 are not applicable to insufficiently stamped arbitral awards at the juncture of their “enforcement or execution”. This award unambiguously clarifies the legal parameters concerning the imposition of penalties on such awards during the execution proceedings.

The court specifically stated that “[T]he concept of imposing penalty on an insufficiently stamped instrument cannot be applied to an arbitral award in an execution proceedings.”

Delhi High Court Rules Email Delivery of Arbitral Awards Valid Under Arbitration Act.

Case Title: Ministry of Youth Affairs and Sports v. Ernst and Young Pvt Ltd1Court: Delhi High CourtDate of Judgment: 23.08.2023

The Delhi High Court recently passed a judgment that has affirmed that the delivery of arbitral awards via email is valid under the Arbitration Act.

In a recent decision, the Delhi High Court stated that the delivery of a scanned, signed copy of an arbitral award via email falls squarely within the ambit of valid delivery as stipulated under Section 31(5) of the Arbitration and Conciliation Act, 1996.This decision clearly delineates the legal standing of electronic delivery methods in arbitration proceedings.

The court specifically stated that “The law has to keep its pace in tandem with the developing technology. When service by email is an accepted mode of service, then sending scanned signed copy of the award/order of the Arbitral Tribunal to the parties would be a valid delivery as envisaged under Section 31(5) of the Arbitration Act.”