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Final Word on Enforceability of Unstamped Arbitration Agreements

“It [law of arbitration] is to be expeditious where the law is slow, cheap where the law is costly, simple where the law is technical, a peacemaker instead of a stirrer-up of strife.”[1]

Are arbitration clauses in unstamped or inadequately stamped agreements enforceable? This is a question that has been under legal scrutiny and has seen conflicting views from various constitutional benches of the Supreme Court for over half a decade.Continue Reading Final Word on Enforceability of Unstamped Arbitration Agreements

Harshness of Consequences not a Ground to Read-Down a Provision: Supreme Court

Introduction:

The Hon’ble Supreme Court in Authorised Officer, Central Bank of India v. Shanmugavelu[1]adjudicated, inter alia, upon (i) whether the forfeiture of the earnest-money deposit under Rule 9(5)[2] of the SARFAESI Security Interest (Enforcement) Rules (“SARFAESI Rules”) can be only to the extent of loss or damages incurred by the Bank/secured creditor, in consonance with the underlying ethos of Sections 73 and 74 of the Indian Contract Act, 1872 (“Contract Act”)? In other words, whether, the forfeiture of the entire earnest money deposit under the SARFAESI Rules amounts to unjust enrichment?; and (ii) whether the principle of “reading down” of a provision should be employed even in situations where the provision, in its plain meaning, is unambiguous and valid, but results in an allegedly ‘harsh’ consequence.Continue Reading Harshness of Consequences not a Ground to Read-Down a Provision: Supreme Court