M S Shyam Sunder Tyagi vs. Public Works Department Government of NCT of Delhi
Background
The decree holder sought to enforce a January 2025 arbitral award against the Public Works Department, but the stamp duty on the award had only been deposited in May 2025: more than one month after the award, contrary to the Indian Stamp Act's requirements as applicable in Delhi. The Judgment Debtor also pointed out that an appeal against a related judgment had already been stayed by the Court.
Decision Breakdown
Noting the stamp duty deficiency was not in line with the statutory scheme, and referencing this Court's own precedent on the point, the decree holder's counsel sought leave to withdraw the enforcement petition, with liberty to refile it later after properly satisfying the stamp duty requirement. The Court granted this leave and dismissed the petition as withdrawn, with liberty to file afresh.
Lesson Learnt
Anyone seeking to enforce an arbitral award in Delhi must ensure the correct stamp duty is paid within the statutory one-month window from the award's date: a delay can derail enforcement proceedings even where the underlying award itself is not in dispute.