Case Note & Summary
The case involves a writ appeal filed by Sri. Gajanan Ramachandra Velangi against an order of a learned Single Judge dated 11.02.2015 in W.P.No.68108/2010. The appellant had challenged the order of the Arbitral Tribunal which impounded an insufficiently stamped document under Section 33 of the Karnataka Stamp Act, 1957. The Single Judge had set aside the Tribunal's order, holding that the Arbitral Tribunal does not have the power to impound documents. The appellant contended that the Arbitral Tribunal, being a person having authority to receive evidence, is empowered under Section 33 of the Act to impound documents not duly stamped. The respondents opposed this, arguing that the Arbitral Tribunal is not a court and thus lacks such power. The Division Bench of the High Court of Karnataka, consisting of Justice H.G. Ramesh and Justice G. Narendar, examined the language of Section 33 of the Karnataka Stamp Act, 1957, which applies to 'every person having by law or consent of parties authority to receive evidence'. The Court noted that an Arbitral Tribunal derives its authority to receive evidence from the Arbitration and Conciliation Act, 1996, and the consent of the parties. Therefore, it falls within the ambit of Section 33. The Court held that the Arbitral Tribunal has the power to impound insufficiently stamped documents. Consequently, the Court set aside the order of the Single Judge and allowed the writ appeal, restoring the order of the Arbitral Tribunal.
Headnote
A) Arbitration Law - Stamp Act - Power to Impound - Section 33 Karnataka Stamp Act, 1957 - Arbitral Tribunal - The issue was whether an Arbitral Tribunal, having authority to receive evidence, can impound an insufficiently stamped document under Section 33 of the Karnataka Stamp Act, 1957. The Court held that an Arbitral Tribunal is a 'person having by law or consent of parties authority to receive evidence' and thus has the power to impound such documents. The Court set aside the order of the Single Judge and allowed the writ appeal. (Paras 1-5)
Issue of Consideration
Whether an Arbitral Tribunal having authority to receive evidence has the power under Section 33 of the Karnataka Stamp Act, 1957 to impound an insufficiently stamped document.
Final Decision
The High Court of Karnataka allowed the writ appeal, set aside the order of the Single Judge dated 11.02.2015 in W.P.No.68108/2010, and restored the order of the Arbitral Tribunal impounding the insufficiently stamped document.
Law Points
- Arbitral Tribunal
- Power to impound
- Section 33 Karnataka Stamp Act
- 1957
- Person having authority to receive evidence
- Impounding of insufficiently stamped documents
Case Details
2016 LawText (KAR) (03) 38
W.A. No.100191 of 2015 (GM-ST/RN)
Sri. F.V. Patil (for appellant)
Sri. Gajanan Ramachandra Velangi
Sri. Vijaya Irappa @ Chudamani Undre and others
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Nature of Litigation
Writ appeal against order of Single Judge in a writ petition concerning the power of an Arbitral Tribunal to impound insufficiently stamped documents under the Karnataka Stamp Act, 1957.
Remedy Sought
The appellant sought to set aside the order of the Single Judge dated 11.02.2015 in W.P.No.68108/2010 and to allow the writ appeal, thereby restoring the order of the Arbitral Tribunal impounding the document.
Filing Reason
The appellant challenged the Single Judge's order which held that an Arbitral Tribunal does not have the power to impound insufficiently stamped documents under Section 33 of the Karnataka Stamp Act, 1957.
Previous Decisions
The learned Single Judge in W.P.No.68108/2010 dated 11.02.2015 set aside the order of the Arbitral Tribunal impounding the document.
Issues
Whether an Arbitral Tribunal having authority to receive evidence has the power under Section 33 of the Karnataka Stamp Act, 1957 to impound an insufficiently stamped document.
Submissions/Arguments
The appellant argued that the Arbitral Tribunal, being a person having authority to receive evidence, is empowered under Section 33 of the Karnataka Stamp Act, 1957 to impound documents not duly stamped.
The respondents contended that the Arbitral Tribunal is not a court and therefore does not have the power to impound documents under Section 33 of the Act.
Ratio Decidendi
An Arbitral Tribunal, having authority to receive evidence by law or consent of parties, is a 'person having by law or consent of parties authority to receive evidence' within the meaning of Section 33 of the Karnataka Stamp Act, 1957, and therefore has the power to impound insufficiently stamped documents.
Judgment Excerpts
Whether an Arbitral Tribunal having authority to receive evidence, has the power under Section 33 of the Karnataka Stamp Act, 1957 to impound an insufficiently stamped document.
An Arbitral Tribunal is a person having by law or consent of parties authority to receive evidence and therefore has the power to impound insufficiently stamped documents under Section 33 of the Karnataka Stamp Act, 1957.
Procedural History
The appellant filed a writ petition before the Single Judge challenging the order of the Arbitral Tribunal impounding an insufficiently stamped document. The Single Judge set aside the Tribunal's order. The appellant then filed the present writ appeal before the Division Bench.
Acts & Sections
- Karnataka Stamp Act, 1957: Section 33
- Arbitration and Conciliation Act, 1996:
