The Delhi High Court on October 1, 2026, declined to release the remaining ₹213.24 crore deposited in an arbitration dispute between British Marine PLC and Steel Authority of India Ltd. (SAIL), holding that the original arbitral award was not available before the Court and the award was unstamped.
Justice Vinod Kumar dealt with two applications concerning the release of amounts deposited during enforcement proceedings. While the Court discharged a bank guarantee of ₹17.09 crore, it refused to release the balance amount until the original award is produced and the required stamp formalities are completed.
Background
The dispute arose from an arbitral award that British Marine PLC sought to enforce before the Delhi High Court. SAIL had deposited ₹230,33,32,891, representing 50% of the decretal amount, pursuant to earlier orders dated December 18, 2023 and February 27, 2024.
Earlier, the Court had permitted release of ₹17.09 crore to British Marine against a bank guarantee. The Section 34 challenge to the award was later dismissed, followed by dismissal of SAIL’s appeal under Section 37. SAIL also informed the Court that although a Special Leave Petition had been filed before the Supreme Court, there was no stay operating against the proceedings.
During the hearing, SAIL raised an objection that the arbitral award was unstamped and therefore could not be executed. The Court examined the issue in light of a recent decision concerning the requirements under the Indian Stamp Act, the Registration Act and procedural requirements.
The Court also noted that the original award was not presently before it. According to both sides, the award was lying in a sealed cover with the Supreme Court pursuant to its earlier directions.
The Court observed:
“Now the situation is that the original Award is not available before this Court. Though an arbitral Award is chargeable instrument, as evident from Article 12 read with Article 15 to Schedule IA of The Indian Stamp (Delhi Amendment) Act 2001, the copy of the Award can neither be stamped nor can be impounded as per the Stamp Act, 1899. As already stated, unstamped Award would not be executable, therefore, the amount cannot be released to Decree Holder.”
The Court consequently dismissed the application seeking release of the remaining ₹213,24,07,891. It clarified that British Marine could bring the original award before the Court and complete the required stamp-duty formalities.
Only after those requirements are fulfilled can the award be enforced and a fresh application for release of the balance amount be considered.
Separately, the Court discharged the ₹17.09 crore bank guarantee, observing that the corresponding amount had already been released and retaining the security served no purpose.
