The issue in respect of stamping of arbitration agreement has been a contentious one, on which the Supreme Court has deliberated over across various judgments.
The issue took center stage in January 2021, in the matter of N.N. Global Mercantile Pvt. Ltd. v. M/s Indo Unique Flame Ltd (“NN Global 1”). & Ors, wherein a 3-judge bench of the Supreme Court held that the arbitration agreement would not be rendered invalid, unenforceable or non-existent even if the underlying contract cannot be acted upon on account of non-payment of stamp duty. However, since there were differing views in respect thereof, the issue was referred for determination by a Constitution Bench of 5-judges. Subsequently, the 5-judge Bench in N.N. Global Mercantile Pvt. Ltd. v. M/s Indo Unique Flame Ltd. & Ors. (“NN Global 2”) by a 3:2 majority took a view that an unstamped arbitration agreement would be non-existent pending payment of stamp duty.