Foreign awards are outside Indian stamp duty, and non-stamping does not bar enforcement under arbitration law.

A foreign award is not covered by Item 12 of Schedule I to the Indian Stamp Act, 1899, because the term "award" refers only to domestic awards contemplated when the statute was enacted. The later enactment of specific rules on foreign awards did not amend the Stamp Act to impose stamp duty on such awards. As a fiscal statute, the Stamp Act must be strictly construed, and any ambiguity operates in favour of the person liable to duty. Section 47 of the Arbitration and Conciliation Act, 1996 only specifies the documents required for enforcement and does not create a separate stamp-duty obligation. Non-stamping therefore does not make a foreign award unenforceable.

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Issues: Whether a foreign award is an "award" within Item 12 of Schedule I to the Indian Stamp Act, 1899 and, if unstamped, whether it is unenforceable under Sections 47, 48 and 49 of the Arbitration and Conciliation Act, 1996.

Analysis: The expression "award" in Item 12 of Schedule I was held to refer to an award made in India under the domestic arbitration regimes in force when the Stamp Act was enacted, and not to a foreign award. The subsequent enactments dealing specifically with foreign awards did not amend the Stamp Act definition or the relevant schedule to include foreign awards. Being a fiscal statute, the Stamp Act was required to be construed strictly, and any ambiguity had to operate in favour of the person liable to pay duty. Section 47 only prescribes the documents to be produced for enforcement and does not create a separate stamp-duty requirement. Article III of the New York Convention was also held not to assist because it presupposes that stamp duty is otherwise leviable on foreign awards.

Conclusion: A foreign award is not liable to stamp duty under the Indian Stamp Act, 1899, and non-stamping does not render it unenforceable under the Arbitration and Conciliation Act, 1996.

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