{"id":237643,"date":"2020-10-17T16:07:43","date_gmt":"2020-10-17T10:37:43","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=237643"},"modified":"2020-10-23T12:54:45","modified_gmt":"2020-10-23T07:24:45","slug":"kar-hc-whether-an-insufficiently-stamped-sale-agreement-containing-arbitration-clause-for-appointment-of-sole-arbitrator-enforceable-under-s-116-of-arbitration-and-conciliation-act-1996-hc-reit","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/10\/17\/kar-hc-whether-an-insufficiently-stamped-sale-agreement-containing-arbitration-clause-for-appointment-of-sole-arbitrator-enforceable-under-s-116-of-arbitration-and-conciliation-act-1996-hc-reit\/","title":{"rendered":"Kar HC | Whether an insufficiently stamped sale agreement, containing arbitration clause for appointment of sole arbitrator enforceable under S.11(6) of Arbitration and Conciliation Act, 1996; HC reiterates settled legal position on said premise"},"content":{"rendered":"

Karnataka High Court: <\/strong>S.R. Krishna Kumar, J., allowing the present petition for the appointment of a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996, held that, the decision made is restricted to the peculiar facts of the instant case and shall not be treated as a precedent whatsoever.<\/p>\n

Brief Facts<\/strong><\/span><\/p>\n

The present petition is instituted under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as \u2018the Act\u2019), praying to appoint a sole arbitrator in terms of the Arbitration clause contained in clause 6 of the Agreement dated 13-06-2014, and in compliance with Section 11(6) of the Act, to enter into adjudication of disputes between the parties at the Arbitration and Conciliation Centre, Bengaluru.<\/p>\n

Contentions<\/strong><\/span><\/p>\n

The Counsel for the respondents argued that the sale agreement, dated 13-06-2014, which contains the Arbitration clause, is insufficiently stamped and as such, the same cannot be acted upon for any purpose whatsoever including seeking appointment of an Arbitrator. In support of the argument, reliance was placed on the decision of Supreme Court in SMS Tea Estates (P) Ltd. v. Chand Mari Tea Co. (P) Ltd., 2011 (14) SCC 66<\/a> which was further followed in the case of Garvare Wall Ropes Ltd. v. Coastal Marine Constructions, 2019 (9) SCC 209.<\/a><\/p>\n

The Counsel for the petitioners submitted that the responsibility of paying the deficit stamp duty and penalty on the said sale agreement, on or before the first date of hearing before the Arbitral Tribunal is hereby undertaken by them and that they have no objection with respect to the same.<\/p>\n

Issue<\/strong><\/span><\/p>\n

    \n
  1. Whether an insufficiently stamped sale agreement, containing arbitration clause for the appointment of sole arbitrator enforceable under Section 11(6) of the Act?\u00a0<\/strong><\/li>\n<\/ol>\n

    Decision <\/strong><\/span><\/p>\n

    While considering the peculiar facts and circumstances of the present case, in addition to the position clarified in SMS Tea Estate<\/a><\/em> and Garvare Wall Ropes<\/a><\/em>, the Court appointed a sole arbitrator imposing necessary conditions with regard to payment of stamp duty and penalty on the sale agreement. It was further said that the procedure adopted in the present case is restricted and limited to the instant case as it is rendered with the consent of both the parties and without prejudice to any of their rights.[Malchira C. Nanaiah v. Pathak Developers (P) Ltd.,\u00a0 2020 SCC OnLine Kar 1630<\/b><\/a>, decided on 5-10-2020]<\/p>\n

    \n

    Sakshi Shukla, Editorial Assistant has put this story together<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

    Karnataka High Court: S.R. Krishna Kumar, J., allowing the present petition for the appointment of a sole arbitrator under Section 11(6) of <\/p>\n","protected":false},"author":67011,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[35672,3226,29785,31135,43811],"class_list":["post-237643","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-highcourts","tag-arbitral-tribunal","tag-arbitration","tag-law","tag-sole-arbitrator","tag-stamped-sale-agreement"],"yoast_head":"\nKar HC | Whether an insufficiently stamped sale agreement, containing arbitration clause for appointment of sole arbitrator enforceable under S.11(6) of Arbitration and Conciliation Act, 1996; HC reiterates settled legal position on said premise | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2020\/10\/17\/kar-hc-whether-an-insufficiently-stamped-sale-agreement-containing-arbitration-clause-for-appointment-of-sole-arbitrator-enforceable-under-s-116-of-arbitration-and-conciliation-act-1996-hc-reit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Kar HC | Whether an insufficiently stamped sale agreement, containing arbitration clause for appointment of sole arbitrator enforceable under S.11(6) of Arbitration and Conciliation Act, 1996; HC reiterates settled legal position on said premise\" \/>\n<meta property=\"og:description\" content=\"Karnataka High Court: S.R. 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In the present application under Section 11(6) of the Arbitration\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/06\/calcutta-court.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/06\/calcutta-court.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/06\/calcutta-court.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/06\/calcutta-court.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/06\/calcutta-court.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":324535,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/06\/17\/del-hc-appoints-sole-arbitrator-despite-clause-specifying-two-arbitrators-upholds-parties-intention-to-arbitrate-legal-news\/","url_meta":{"origin":237643,"position":1},"title":"Delhi High Court appoints sole arbitrator despite clause specifying two arbitrators; Upholds parties’ intention to arbitrate","author":"Editor","date":"June 17, 2024","format":false,"excerpt":"The Court noted Arbitration agreement specifying an even number of arbitrators cannot be a ground to render the arbitration agreement invalid. Appointed a sole arbitrator under Section 11(6) petition.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Delhi High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":278787,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/11\/30\/jharkhand-high-court-legal-research-legal-update-arbitration-conciliation-act-1996-section-116-section-152-section-21\/","url_meta":{"origin":237643,"position":2},"title":"Jharkhand High Court | Maintainability of application under S. 11(6), Arbitration and Conciliation Act, 1996 for appointment of substitute arbitrator","author":"Editor","date":"November 30, 2022","format":false,"excerpt":"\u00a0 \u00a0 Jharkhand High Court: While allowing the application under Section 11(6), Arbitration and Conciliation Act, 1996 (Arbitration Act) for appointment of substitute arbitrator, a single judge bench of Sujit Narayan Prasad, J. held that since first arbitrator was appointed under Section 11(6) of the Arbitration Act after the applicant\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Jharkhand High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/11\/MicrosoftTeams-image38-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":300002,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/08\/25\/rajasthan-hc-appointed-arbitrator-bank-guarantee-forfeited-consideration-force-majeure-clause\/","url_meta":{"origin":237643,"position":3},"title":"Rajasthan High Court appoints sole arbitrator where performance security was forfeited without considering force majeure clause","author":"Editor","date":"August 25, 2023","format":false,"excerpt":"\u201cThe Court exercised the powers conferred under Section 11 of the Arbitration and Conciliation Act, 1996 and appointed, Jai Prakash Narayan Purohit, Retired Additional District Judge, as the sole Arbitrator to adjudicate the dispute between the parties.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"rajasthan high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/rajasthan-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/rajasthan-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/rajasthan-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/rajasthan-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":367145,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/11\/19\/delhi-hc-on-validity-of-unilateral-appointment-of-sole-arbitrator\/","url_meta":{"origin":237643,"position":4},"title":"‘Letter consenting to unilateral appointment of sole arbitrator doesn’t constitute waiver under Sec. 12 (5) of Arbitration Act’: Delhi HC","author":"Editor","date":"November 19, 2025","format":false,"excerpt":"\u201cAt best, the letter consenting to appointment of sole arbitrator, was a conditional acceptance of the appointment of a sole arbitrator. The condition being that the sole arbitrator would adjudicate the disputes between the petitioner and both the respondents.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"unilateral appointment of sole arbitrator","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/unilateral-appointment-of-sole-arbitrator.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/unilateral-appointment-of-sole-arbitrator.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/unilateral-appointment-of-sole-arbitrator.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/unilateral-appointment-of-sole-arbitrator.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":287070,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/03\/17\/arbitration-petition-calcutta-high-court-appointment-arbitrator-disqualification-section-12-seventh-schedule-arbitration-and-conciliation-act-1996-legal-research-news-scc-online-blog\/","url_meta":{"origin":237643,"position":5},"title":"All unilateral appointments of arbitrators are not invalid: Calcutta High Court","author":"Ritu","date":"March 17, 2023","format":false,"excerpt":"Calcutta High Court held that all the unilateral appointment of arbitrators is not invalid unless the arbitrator's relationship falls within the Seventh Schedule to the Arbitration and Conciliation Act, 1996.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Calcutta High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/03\/MicrosoftTeams-image-604.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/03\/MicrosoftTeams-image-604.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/03\/MicrosoftTeams-image-604.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/03\/MicrosoftTeams-image-604.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/237643","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67011"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=237643"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/237643\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=237643"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=237643"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=237643"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}