The Delhi High Court has held that mere reference of the dispute to arbitration does not preclude the High Court from examining the issue of stamp duty in a writ petition.
Mrs Vinnu Goel, the Petitioner is a plaintiff which is a suit for declaration of the Memorandum of Understanding, which is purported to be signed between Defendant Nos.1-3 and the Plaintiff, as null and void as well as partition of the suit properties. An application under Section 8 of the Arbitration & Conciliation Act was filed by Respondents No.2 & 3 herein praying that the parties to the said suit be referred to arbitration because of the MOU. The said application was decided on 08.08.2023.
In the said application the Petitioner herein had raised a contention that the MOU seeks to create rights in the properties which would amount to conveyance under the Stamp Act 1899 ( Indian Stamp Act ), requiring stamping on an ad valorem basis.
Justice Subramonium Prasad viewed that the interest of justice would be served by permitting the Petitioner to approach the Chief Controlling Revenue Authority as to the amount of duty with which the instrument in question is chargeable and proceed ahead per law.
The contention of Senior Counsel for the Respondent that the same exercise can be done by the Arbitral Tribunal cannot denude the jurisdiction of the Court from entertaining this writ petition as the question that is being considered is whether the State has been deprived of the revenue of the stamp duty payable on the instrument or not.
The Court held that the Court has not made any observation on the merits of the case and the Chief Controlling Revenue Authority is directed to apply its mind without being influenced by any observations made in the instant writ petition.
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