Arbitration and Conciliation Act, 1996, Section 11(6A) and First Part of Section 7(2)

Arbitration and Conciliation Act, 1996—Section 11(6A) and First Part of Section 7(2)—Indian Contract Act, 1872, Section 2(h)—Indian Stamp Act, 1899, Sections 33 and 35—Existence of an arbitration agreement—Held, as per First part of Section 7(2) of Arbitration and Conciliation Act, 1996, an arbitration agreement may be in the form of an arbitration clause “in a contract”—Now when an arbitration clause is contained “in a contract”, it is significant to note that that as per Section 2(h) of Indian Contract Act, 1872, an agreement only becomes a contract if it is enforceable by law—Under the Indian Stamp Act, an agreement does not become a contract, namely, that it is not enforceable in law, unless it is duly stamped—Therefore, a plain reading of Section 11(6A), when read with Section 7(2) of the 1996 Act and Section 2(h) of the Contract Act, would make it clear that an arbitration clause in an agreement would not exist when it is not enforceable by law. 

Pay Rs.300/- and get full text of the judgment on the above stated point. Judgment will be sent to you by email only after receipt of full payment in our bank account.*

File Name:- APRIL 2019_SC_3.pdf

*Terms and Conditions applicable