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Arbitrator Quits!

Page no : 2

Vineet (Director)     01 July 2010

You can challenge the impartiality of Arbitrator but that will not automaticaly debar him from conducting the proceedings. He can pass an order rejecting your challege and proceed and there is no appeal against such rejection.

 

As per Arbitration Act, the Arbitrator can ask both the parties to deposit in equal share the likely cost of arbitration including his fee. If you refuse to pay, the other party may pay your share and continue with the proceeding but then it will be recoverable from you against the award or in addition to award.

 

You can only challenge the final award citing the reasons of bias, opportunities not being granted to you etc. But at this juncture it is advisable that you cooperate with the proceedings while briniging your objections on record. Please note that the award on arbitrator is executable in the same manner as of decree of court unless set aside by a competent court.

RSH (NA)     01 July 2010

Thanks for the detail explaination Vineet. I agree with you.

 

Now I come to merits. The case is about Non-competent clause & Post employment restriction. Which is not enforcebale by the law and its a settled law.

 

My standing is absolutely clean and I do have proofs against claimaint that what ever allegations they have put in is baseless and agreement is null and void. Accept the sole Arbitrator clause (which I am contesting openly)

 

Now, when Indian law doesn't support Non-competent clause & Post employment restriction, how someone can go for legal proceedings?

 

I also know this fact that the arbitrator will give award against me and then I have go to the court later. 

 

Your views please.

Best

Vineet (Director)     02 July 2010

Dear Mr RSH

 

I am unable to comment on the clauses of non-compte and post employment restrcitions in your employment contract as to whether they are illegal or against the Indian Contract Act provision. Certain contracts provide for these cluases which remain effective even after termination of agreement. The best example is post employment restrictions placed by even Central Government on its employees.

 

Whether or not these clauses are enforceable in your case is the subject matter of dispute and you may press your standing in the matter with cogent reasoning. But that does not restrict other party to press for its claim if it perceives that there is violation of contract. It is for the arbitrator or the court to decide whther the contract provisions were voidable or not.

 

As the leagality of appointment of arbitrator by your ex-employer cannot be challenged, please file your reply to claims filed before the arbitrator. The matter should not be decided ex-parte after allowing opportunity to you.

RSH (NA)     02 July 2010

Thanks Vineet!


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