In Brief
Garware Wall Ropes Ltd contracted Coastal Marine Constructions for installation of geotextile tube embankments for coastal erosion protection. A dispute arose, and the respondent filed suit rather than going to arbitration as the sub-contract provided. The Supreme Court held that an arbitration clause in a sub-contract does not legally exist until the contract is properly stamped under stamp duty law. Even though the appellant may have owed stamp duty, it cannot exploit its own non-compliance to avoid arbitration. The Court allowed the appeal and remitted the matter to the High Court for reconsideration in light of this principle.
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