ORDER : I. Mahanty, J. 1. Heard learned counsel for the respective parties. 2. This application under Section 11 of the Arbitration & Conciliation Act, 1996 (hereinafter referred to as 'the Act of 1996') has come to be filed seeking appointment of an Arbitrator out of the disputes which have arisen from out of the agreement to sell dated 20.01.2016 entered into between the parties. 3. Mr. Sudesh Bansal has entered appearance on behalf of the respondent and placing reliance on the judgments of the Hon'ble Supreme Court in the cases of SMS Tea Estates Pvt. Ltd. Vs. M/s. Chandmari Tea Co. Pvt. Ltd.- (2011) 14 SCC 66 & Garware Wall Ropes Limited Vs. Coastal Marine Constructions and Engineering Limited (2019) 9 SCC 209 submitted that since on the agreement relied upon by the petitioner for seeking appointment of an Arbitrator, stamp duty has not been paid, the same cannot be sent for arbitration. 4. However, learned counsel for the applicant drew attention of the Court to a latest judgment of the Hon'ble Supreme Court in M/s. N.N. Global Mercantile Pvt. Ltd. Vs. M/s. Indo Unique Flame Ltd. & Ors. (Civil Appeal Nos. 3802-3803/2020) dated 11.01.2021, in which Their Lordships of the Hon'ble Supreme Court came to hold as follows:- "12. We are of the considered view that the finding in SMS Tea Estates and Garware that the nonpayment of stamp duty on the commercial contract would invalidate even the arbitration agreement, and render it non-existent in law and un-enforceable, is not the correct position in law." 5. It would be relevant herein also to record the findings of the Hon'ble Supreme Court in paragraph 7.1(b) which read as under:- "7.1 In an arbitration agreement, the disputes may be referred to arbitration by three modes. (a) ---------- (b) The second mode of appointment is where the parties fail to make the appointment in accordance with the arbitration agreement, and an application is filed under Section 11 before the Court to invoke the default power for making the appointment. In such a case, the High Court, or the Supreme Court, as the case may be, while exercising jurisdiction under Section 11, would impound the substantive contract which is either unstamped or inadequately stamped, and direct the parties to cure the defect before the arbitrator/tribunal can adjudicate upon the contract." 6.
In such a case, the High Court, or the Supreme Court, as the case may be, while exercising jurisdiction under Section 11, would impound the substantive contract which is either unstamped or inadequately stamped, and direct the parties to cure the defect before the arbitrator/tribunal can adjudicate upon the contract." 6. Accordingly, after considering the submissions advanced, with consent of the parties this Court appoints Hon'ble Mr. Justice D.C. Somani (Retd.) R/o. HE-404, Pratap Apartment, HIG-Block, Sector-29, Pratap Nagar, Sanganer, Jaipur to act as an Arbitrator in the matter under the Act of 1996. The arbitration fees shall be in accordance with fourth schedule of the Act of 1996. 7. The parties are at liberty to raise all such objections that may be available to them before the Hon'ble Arbitrator, who shall do well to act in terms of the directions of the Hon'ble Supreme Court, as quoted hereinabove. 8. Registry is directed to intimate Hon'ble Mr. Justice D.C. Somani (Retd.) of his appointment as Arbitrator and parties are at liberty to call upon reliable date for necessary directions. 9. The application is accordingly disposed of. All pending applications also stand disposed of.