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Phanindra (Journalist)     23 November 2011

Notice for arbitration

I resigned with a company during the last year of my three yearsa agreement. I resigned over my father's ill-health. He underwent operation and needed my assistance.

When my father recovered I asked the company to take me back as my financial condition was not good and my father recovered too. The company rejected my request and asked me to pay the compensation withih a week.

Today, I received an arbitral notice asking my consent for appointing some X as sole arbitrator.

What should I do. I dont' trust the company and their arbtrator too. Can I  ask them to approach ICADR for appointing the sole arbitrator.

Thanks and regards.



Learning

 6 Replies

Kumar Doab (FIN)     23 November 2011

It shall be appropriate to show your appointment letter, service agreement, resignation letter, letter accepting your resignation, FNF statement , notice issued by company etc. If possible you may post these. You may erase the names etc, for confidentiality.

Is there any arbitration clause in your appointment letter/service agreement?

 

 

Phanindra (Journalist)     23 November 2011

I don't have the scanned copies.

Yes, there was arbitration clause in my agreement.

Secondly, I was not given a duplicate copy of the agreement.

In the notice, the lawyer mentioned me to pay Rs.75,000 as compensation (which was in the agreement). Secndly, he's asking my surety also to pay 75,000 along with me and mentioned 'co-terminus term.'

I entered  into agreement on 14.03.2009.

Term: 3 years.

1st year compensation:1,25,000

2nd yr compensation: 1,00,000.

3rd year compensation: 75,000.

I resigned on May 1, 2011.

Kumar Doab (FIN)     23 November 2011

As per the agreement, who shall appoint the arbitrator?

If establishment ICDAR posted by you can help you for appointment of sole arbitrator, you may.

You are within your rights to obtain copy of agreement. The service agreement needs to be examined. Has the company invested on you for training?

Demand of payment from surety seems to be unreasonable.

It shall be appropriate to approach your lawyer with all record you have, asap.

Phanindra (Journalist)     23 November 2011

I asked for the copy and they denied it at the time of appointment.

Yes, it is definately unfair to demand money from my surety. He should come into picture only if I go absconding or if I don't respond to them.

Though I was appointed as trainee for an year, they didn't incur any expenses on me. In fact, I was multitasking besides handling a project on my own during my training. How can a trainee handle the project. Over and above, I was not given any training certificate as such.

Kumar Doab (FIN)     23 November 2011

You are within your rights to demand now also copy of the agreement and you may quote the occasions on which you had demanded the copy but it was denied. Otherwise also you can obtain the copy during arbitration proceedings.

Your lawyer would require going thru the agreement and other docs.

You need to fight your case. Approach your lawyer as ap. Your lawyer may choose to reply to the notice, quoting facts. In the absence of any reply company may appoint the arbitrator of their choice, quoting your consent was sought.

It is always better to weigh the pro and cons and to seek advice of elders in the family, competent and experienced well wishers, lawyer/law firm before signing on the dotted line, than facing difficulties later. Apparently based on your post it may be difficult for the company to extract money from you.

Rajesh Hazra (Mediator and Legal Counsel )     23 November 2011

You have been advised rightly and in details by Mr.Kumar Doad . Go through the papers and be sure of the conditions then only decide for the next course of action. 


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