N S GEETHA Vs. B RAGHUVEER

JUDGEMENT

(1.) THIS writ petition by the decree holder is directed against an interlocutory order dated 15. 12. 2007 (Annexure-A) passed by the Executing Court - the Court of the Additional City Civil Judge, Bangalore in Execution Case No. 1697/2007. By the impugned order, the Executing Court, in exercise of the power under Section 34 of the Karnataka Stamp Act, 1957 ('the Stamp Act'), has directed the petitioner to pay Rs. 73,788/- towards duty and penalty on the settlement agreement dated 24. 11. 2000 (Annexure-B) effected as per Section 73 of the Arbitration and Conciliation Act, 1996 ('the Arbitration Act' ).

(2.) I have heard the learned Counsel appearing for the parties and perused the impugned order at Annexure-A.

(3.) THE question of law that falls for determination in this petition is as to whether a settlement agreement effected as per Section 73 of the Arbitration Act attracts duty under the provisions of the Stamp Act? it is stated that the parties had arrived at a settlement relating to a certain dispute before the Conciliator and a settlement agreement as per Annexure-B was effected as per Section 73 of the Arbitration Act. If it be so, in view of Section 74 read with Section 30 (4) of the Arbitration Act, the settlement agreement shall be deemed to be an arbitral award under the Arbitration Act and hence, it attracts duty under the Article 11 of the Schedule to the Stamp Act. It is relevant to refer to Section 74 of the Arbitration Act which reads as follows: