THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Arbitration Application No.17 of 2011 (Dated : 03-11-2011) Between: Mr. Sunil Ahuja S/o late Sri K.N.Ahuja …Applicant A n d M/s. A & N Hotels, rep. by its Managing Director and others ….Respondents THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Arbitration Application No.17 of 2011 ORDER: This arbitration application has been taken out under sub-sections (5) of Section 11 of the Arbitration & Conciliation Act, 1996 seeking appointment of an arbitrator for resolution of the disputes relatable to Lease Agreement dated 10.9.2007. 2. The applicant claims to be the owner of premises bearing Municipal No.6-3-2, 3, 3/1 situated at Road No.1, Banjara Hills, Hyderabad. The 1st respondent is the partnership firm and respondents 2 to 6 are the partners. The 1st respondent taken the premises on lease under Lease Agreement dated 10-9-2007 for five years. Disputes arose between the parties relatable to the terms of the lease deed. Since the lease deed contains an arbitration clause, the applicant being the owner of the premises has moved this arbitration application seeking the prayer stated supra. 3. Notice to the respondents came to be ordered on 18.3.2011. The respondents entered appearance through a counsel. The respondents 1 to 4 and 6 filed counters resisting the application. 4. Heard learned counsel appearing for the parties. 5. Learned counsel appearing for the applicant fairly concedes that the lease agreement is not properly stamped and the original lease deed is also not in possession of the applicant. Unless the original lease deed is placed on record, there cannot be any reference to the terms of the lease agreement. The Supreme Court in M/s. SMS TEA ESTATES PVT. LTD. v. M/S. CHANDMARI TEA CO. PVT. LTD.[1] has held that if the document is found to be not duly stamped, Section 35 of Stamp Act bars the said document being acted upon. Consequently, even the arbitration clause therein cannot be acted upon. The Court should then proceed to impound the document under Section 33 of the Stamp Act and follow the procedure under Section 35 and 38 of the Stamp Act. 6. Since the lease deed is not placed on record, the question of imposing stamp duty and penalty does not arise. Therefore, this arbitration application is not maintainable and accordingly, the same is hereby dismissed. No costs. _____________________ B.SESHASAYANA REDDY, J Dt.03-11-2011 *RAR [1] 2011(7) SCALE