SUNIL KUMAR BHAKOO Vs. VARISHA ASLAM KHAN

JUDGEMENT

(1.) Appeal under Sec. 37 of the Arbitration and Conciliation Act, 1996 (for short the 1996 Act) is filed against the order dtd. 26/4/2024 passed by the Commercial Court, Alwar (hereinafter court) accepting the objection of the respondent filed under Sec. 34 of the 1996 Act.

(2.) The appellants and respondent on 21/10/2016 entered into agreement to sell a land for consideration of Rs.65.00 Lakh. The part payment was made and on failure of the respondent to execute the sale deed in favour of the appellants the arbitration proceedings were initiated as provided under Clause 7 of the agreement to sell. The proceedings culminated in award dtd. 3/12/2018. The claim of the appellants was allowed by awarding specific performance of the agreement to sell. The respondent was to execute sale deed of the land in question within a period of four weeks from the publication of the award and on receipt of the balance consideration. Damages of Rs.40,000.00 per month with effect from 22/4/2017 till compliance of the directions were awarded. The cost was awarded in favour of the claimant.

(3.) The respondent filed objection under Sec. 34 of 1996 Act. During pendency of the objections, in view of the judgment of Seven Judges of the Supreme Court in In Re: Interplay Between Arbitration Agreements under Arbitration, 1996 and Stamp Act, 1899 reported in [(2024) 6 SCC 1] the appellants filed application on 20/12/2023 for impounding the agreement to sell to adjudicate the stamp duty payable. Without deciding the application, the award was set aside vide order dtd. 26/4/2024. It was held that the agreement to sell was insufficiently stamped and no notice in compliance as per Sec. 21 of the Act was issued.