21 September, 2018
In its recent judgment of M/s Shriram Epc Limited Vs Rioglass Solar SA Civil Appeal No. 9515 of 2018 the Supreme Court of India has set at naught the long pending controversy on payment of stamp duty under the Indian Stamp Act, 1899 for enforcement of foreign awards.
The main bone of contention in the appeal before the Supreme Court was whether the term “award” as used in Item 12 of schedule I read with sections 33 and 35 of the Indian Stamp Act, 1899 shall include a foreign award.
The Supreme Court held that the word “award” has never included a foreign award from the very inception till date.
Consequently, a foreign award not included in Schedule I of the Indian Stamp Act, 1899 is not liable for stamp duty. T
he Court clarified that the Indian Stamp Act, 1899 is a fiscal statute which must be construed literally. Any ambiguity in the said act should be construed to the benefit of the assesse who is to pay the stamp duty.
In conclusion, the Supreme Court held that the fact that a foreign award has not borne stamp duty under the Indian Stamp Act will not render it unenforceable.
For further information, please contact:
Mustafa Motiwala, Partner, Clasis Law
mustafa.motiwala@clasislaw.com
