The Delhi High Court has blocked the release of over ₹213 crore deposited by Steel Authority of India Limited (SAIL) towards an arbitral award in favour of British Marine PLC after finding that the award was unstamped and could not presently be enforced. (British Marine v. SAIL)
Justice Vinod Kumar held that an unstamped arbitral award is not executable and rejected British Marine's application seeking release of the balance amount deposited by SAIL.
“Unstamped Award would not be executable, therefore, the amount cannot be released to Decree Holder,” the Court said
The Court, however, clarified that British Marine could take steps to bring the original arbitral award before the High Court, pay the requisite stamp duty and, thereafter, move a fresh application for release of the money.
The case arose from an arbitral award passed in favour of British Marine, which had initiated enforcement proceedings before the Delhi High Court. SAIL had challenged the award under Section 34 of the Arbitration and Conciliation Act, 1996. Pursuant to orders passed in December 2023 and February 2024, SAIL deposited ₹230.33 crore with the Registrar General of the High Court, representing 50 per cent of the decretal amount. Of this, ₹17.09 crore was subsequently released to British Marine against a bank guarantee.
SAIL's challenge to the arbitral award under Section 34 was dismissed on October 13, 2025. Its appeal under Section 37 was also dismissed by a Division Bench of the High Court on September 17 this year. British Marine then sought release of the remaining ₹213.24 crore lying with the Court.
SAIL told the Court that it had filed a special leave petition (SLP) before the Supreme Court, though there was no stay operating against enforcement of the award. It nevertheless opposed the release on the ground that the award itself was unstamped and, therefore, could not be executed
The High Court noted that the original arbitral award was not before it. Both sides informed the Court that the original was lying in a sealed cover with the Supreme Court pursuant to directions issued in an earlier round of proceedings in 2022.
Justice Kumar observed that while an arbitral award is a chargeable instrument, a copy of the award can neither be stamped nor impounded under the Stamp Act. Since the original was unavailable, the Court said the defect could not presently be cured.
The Court consequently dismissed British Marine's application for release of ₹213.24 crore.
In a separate application, the Court discharged the ₹17.09 crore bank guarantee furnished by British Marine after noting that the corresponding amount had already been released and that SAIL's Section 34 challenge as well as its Section 37 appeal had been dismissed.
Venu Srinivasan, Vijay Singh Question SDTT’s Authority To Back Tata Sons Restructuring; Noel Tata, Son File 36 Caveats with Charity Commissioner
Moneylife Digital Team
01 October 2026
The governance dispute within the Tata Trusts has widened, with Sir Dorabji Tata Trust (SDTT) vice-chairmen and trustees Venu Srinivasan and Vijay Singh questioning the authority and process behind the Trusts’ latest proposal to...
Venu Srinivasan Flags ‘Serious Governance Lapses’ at Tata Trust, Seeks Inquiry, Board Freeze and Noel Tata’s Recusal
Moneylife Digital Team
30 September 2026
The long-running differences within Tata Trusts have escalated into a fresh regulatory challenge, with Sir Dorabji Tata Trust (SDTT) trustee Venu Srinivasan asking the Maharashtra charity commissioner to order an inquiry into the...
Govt-owned IIFCL Moves NCLT against Anil Ambani-led Mumbai Metro over ₹1,745 Crore Dues
SN Thyagarajan (Bar
and
Bench)
30 September 2026
India Infrastructure Finance Company (UK) Limited (IIFCL UK), the overseas arm of Indian government-owned IIFCL, has moved the National Company Law Tribunal (NCLT) seeking initiation of insolvency proceedings against Mumbai Metro One...
Tata Sons Restructuring, Possible IPO Put Credit Profile of Tata Group under Spotlight: S&P
Moneylife Digital Team
29 September 2026
The proposed restructuring of Tata Sons Pvt Ltd and the possibility of a future listing of the Tata group’s holding company are unlikely to have an immediate effect on the credit ratings of major group companies, but they could raise...
