BGS SGS SOMA JV vs. NHPC Limited
Background
The decree holder had filed a petition to enforce an arbitral award against NHPC Limited but the enforcement was affected by a stamp duty compliance issue under the Indian Stamp Act, in light of a separate ruling of the same High Court on this point.
Decision Breakdown
Counsel for the decree holder himself sought permission to withdraw the enforcement petition, with liberty to re-file once the stamp duty issue was properly addressed. The Court granted this leave and dismissed the petition as withdrawn, without deciding the underlying enforcement dispute.
Lesson Learnt
Before trying to enforce an arbitral award in Delhi, parties must ensure the award has been properly stamped under the Indian Stamp Act: a shortfall here can force withdrawal and re-filing of an otherwise valid enforcement case.