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CDS Infra Projects Limited vs. National Highway Authority of India

Enforcement Petition (Commercial Arbitration) · 2026:DHC:8168Decided 22 Sept 2026New Delhi Bench
OMP (ENF.) (COMM.) 265/2025CNR: DLHC010938752025
Justice Om Prakash Shukla

Background

CDS Infra Projects sought to enforce an arbitral award against the National Highway Authority of India (NHAI). At the hearing, it became apparent that the underlying arbitral award had not been stamped with sufficient stamp duty under the Indian Stamp Act, 1899.

Decision Breakdown

The Court held that an insufficiently stamped instrument (including an arbitral award) cannot be enforced, but that this defect is curable: the award is liable to be "impounded" under Section 33 of the Stamp Act so the required stamp duty (and any penalty) can be paid. Rather than have the Court formally impound the award, the decree holder's counsel sought leave to withdraw the petition, with liberty to refile once the stamp duty issue was resolved. The Court granted this and dismissed the petition as withdrawn.

Lesson Learnt

Before trying to enforce an arbitral award in court, make sure it carries the correct stamp duty: an award that is under-stamped cannot be enforced until that basic formality is fixed, no matter how strong the underlying claim is.

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