RITHWIK PROJECTS PRIVATE LIMITED Vs. MBL INFRASTRUCTURES LIMITED

JUDGEMENT

(1.) The present application has been filed under Sec. 11 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as, "the 1996 Act") for reference to arbitration of the dispute which has arisen between the parties in connection with an Option Agreement dated October 18, 2010, as amended on July 29, 2011, which contains an arbitration clause.

(2.) Such contention is disputed by the respondent, inter alia, on the ground that the Agreement is insufficiently stamped. It is argued that as per Item No.5(b)(ii) of Schedule 1A of the West Bengal Amendment of the Indian Stamp Act, the stamp duty payable for the Option Agreement is at least above Rs.23,00,000.00, whereas the said Agreement has been recorded on a stamp paper of Rs.100.00 only. In view of Sec. 38 of the Indian Stamp Act, 1899 (in brief, "the 1899 Act") the court cannot refer the matter to arbitration. In such context, the learned Senior Advocate appearing for the respondent cites N.N. Global Mercantile Private Limited Vs. Indo Unique Flame Ltd. And others, reported at 2023 SCC OnLine SC 495.

(3.) Next, it is argued that the application is misconceived and bad for non-joinder of the Special Purpose Vehicle (SPV), namely Orissa Steel Expressway Private Limited, which a party to the Option Agreement containing the arbitration clause.