In Brief
Black Pearl Hotels, a company operating retail premises, entered into a "Conducting Agreement" with Planet M. Retail Ltd allowing the latter to conduct business from the premises for a monthly fee based on net sales (with a minimum of Rs. 11 lakh). When disputes arose, Black Pearl sought appointment of an arbitrator under Section 11 of the Arbitration Act. The High Court Judge, questioning whether the document was a lease or licence and concerned about stamp duty, delegated both the legal characterization and stamp duty determination to the Court's Registrar. The Supreme Court held that judicial determination of a document's legal nature cannot be delegated; such adjudication must be performed by the Judge after hearing parties. The Court remitted the matter for the Judge to first determine the document's character before proceeding with the arbitrator appointment."
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