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M/s B.S. Promoters & Developers vs. Sanjeev Malhotra & Ors.

Enforcement Petition (Commercial Arbitration) · 2026:DHC:7923Decided 16 Sept 2026New Delhi Bench
OMP (ENF.) (COMM.) 3/2019CNR: DLHC010002352018
Justice Om Prakash Shukla

Background

The decree holder sought to enforce an arbitral award against several judgment debtors. During the hearing, it emerged that the stamp duty on the award had been paid more than one month after the award was made, which does not comply with the Indian Stamp Act, 1899 as applicable in Delhi.

Decision Breakdown

Relying on the Delhi High Court's own precedent in M/s URC Construction (P) Ltd. v. Airports Authority of India, the Court held that an award stamped this late is liable to be "impounded" (seized/held for penalty) rather than enforced as it stood. The decree holder's counsel therefore sought leave to withdraw the enforcement petition, with liberty to refile after properly paying the requisite stamp duty and any penalty due. The Court granted this and dismissed the petition as withdrawn.

Lesson Learnt

An arbitral award must be properly stamped within the time limits set by stamp duty law before it can be enforced in court: a defect in stamping, even if only procedural, can stall enforcement of an otherwise valid award until it is corrected.

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