Tata Aldesa JV vs. Dedicated Freight Corridor Corporation of India Ltd and connected matters
Background
Tata Aldesa JV, having won an arbitral award, sought to enforce it against a government corporation. However, the required stamp duty on the arbitral award/record had been paid more than 30 days after it was due, which is not permitted under the Indian Stamp Act as applied in Delhi.
Decision Breakdown
Relying on a precedent from the same High Court (M/s URC Construction v. Airports Authority of India), the Court held the stamp duty defect had to be cured before enforcement could proceed. Rather than contest the point, the decree holder's counsel sought leave to withdraw the enforcement petitions, with liberty to refile later once the stamp duty issue was resolved. The Court granted this and dismissed the petitions as withdrawn, with liberty to refile.
Lesson Learnt
Before trying to enforce an arbitral award in Delhi courts, make sure the arbitral record is properly stamped within the required time: a stamp duty shortfall can stall enforcement proceedings even after you've won the underlying arbitration.