A dispute arose between InfoTeck Global Services Ltd. ("InfoTeck") and NextGen Power Solutions Private Ltd ("NextGen") concerning enforcement of an arbitration clause in an IT implementation and service contract executed

The facts of the given situation are similar to the case of N. N. Global Mercantile Private Limited v. M/s Indo Unique Flame Ltd. Ors. In this case, the court observed that exercise of power coupled with duty under Section 33 of the Stamp Act (Indian Stamp Act, 1899) cannot be accused of judicial interference in contravention to Section 5 of the Arbitration and Conciliation Act (the Act) and further that it shall not be confused with examination whether an arbitration agreement or arbitration clause in the said instrument, exists so as to appoint arbitrator in invocation of the power under Section 11(6) of the Act. In that view of the matter, the provisions under Section 11(6A) or 16 of the Act cannot act as a rider for the exercise of the said power under Section 33 of the Stamp Act. The Bar under Section 35 of the Stamp Act on admission of instruments not duly stamped in evidence, as is evident from proviso (a) to it, is not permanent and is curable by following procedures provided thereunder and making an endorsement as provided under Section 42(1) of the Stamp Act. In the above matter, it can therefore be said that Arbitration Agreement may be taken as valid by the courts after Payment of appropriate duty and that should not be taken as Judicial Intervention. In view of the above discussion, it may be said that the contention of NextGen is not valid.