The Supreme Court has stayed the operation of two Delhi High Court orders concerning stamp duty requirements in proceedings for the execution of arbitration awards. The matter involves M/s URC Construction (P) Ltd and connected petitions, raising questions about the procedure for impounding documents under the Indian Stamp Act, 1899.
Background
The petitioners challenged the Delhi High Court's orders dated September 1 and September 7, 2026. Their counsel argued that the directions were inconsistent with Section 33 of the Indian Stamp Act, which deals with impounding instruments that are not duly stamped.
They submitted that Registry officials handling the numbering of enforcement petitions are not authorities competent to receive evidence at that stage.
The petitioners also relied on the Delhi High Court's practice directions dated July 13, 2026, which required decree holders to declare that stamp duty had been paid on the award.
The directions stated:
"Hon’ble the Chief Justice has been pleased to direct that in every execution petition under Section 36 of the Arbitration & Conciliation Act, 1996, the Petitioner/Decree Holder shall make a declaration in bold capital letters on the top of the index that he has paid the stamp duty on the award."
Regarding pending execution petitions, the practice directions further provided:
"As regards, pending execution petition under Section 36 of the Arbitration & Conciliation Act, 1996, the Petitioner/Decree Holder shall pay the stamp duty on the award (where not paid) within a period of four weeks from the date of issue of this practice direction."
A Bench of Justice K.V. Viswanathan and Justice Arun Palli issued notice, returnable on January 25, 2027, and stayed the operation of the challenged orders until further orders.
The Court clarified that execution proceedings could continue and directed that the July 13, 2026 practice directions would remain in operation.
