Arbitration & Concillation Act
ASHOK KUMAR AGARWAL
(Querist) 17 December 2008
This query is : Resolved
My client entered into an agreement for taking factory premises on rent for six years.At the time of entering into agreement a sole arbitrator was appointed and in the agreeement a clause " all disputes subject to Arbitration" was mentioned.
After one year the Arbitrator resigned .The opposite party took advantage of the situation and filed a case in the District court for vacation of the premises on the ground that the tenant is a defaulter in payment of rent.The tenant contends that the landlord had not given him the necessary paper as promised by him to the Arbitrator as such he would pay the rent only to the Arbitrator on receipt of the necessary papers.
We had made a plea to the court that since agreement was subject to Arbitrator hence the court may refer the matter to Arbitration.The court has no right in the matter.
The arbitrator used to receive the rent on behalf of the landlord.The arbitrator had directed the landlord to give necessary papers to the tenant for smooth running of his factory to which the landlord kept on ignoring.Being fed up of all this the arbitrator had resigned and the landlord taking advt of the sitution filed a suit for eviction.
The clause of Arbitration is as :-
" Any disputes or differences between the parties hereto as to the effect,interpration or application of this tenenacy agreement or as to their rights,duties,liablilities thereunder or as to any act matter or thing arising out of or consequent to or in connection with this tenancy agreement shall be referred to and finally resolved by the sole aribtrator Mr X.The arbitration proceedings shall be in accordance with the provisions of the Arbitration & Concillation Act 1996 or any subsequent enactment or amendment thereof .
The matter is still pending in the court.Pls advise when there is no arbitrator but the agreement is subject to Arbitration will the court have any power to act on it or will the court appoint an arbitrator on our behalf?
Manish Singh
(Expert) 17 December 2008
look first thing its not mandatory for parties to keep the Arbitrator engaged for the whole period of arbitration.
here the suit for eviction is not a dispute so not a subject matter of arbiration hence the civil court can entertain the said suit.
but success of such suit depends on the provisions of local rent laws but still the reason for eviction must be reasonable under the law like personal occupancy etc.
Tribhuwan Pandey
(Expert) 17 December 2008
The arbitration clause is " all disputes subject to Arbitration" Question is that whether the eviction from premises is also under arbitration clause? need more details.
Generally suit for eviction is not a subject matter of arbitration. So the proper course of eviction is civil suit.
Manish Singh
(Expert) 18 December 2008
Dear Members,
eviction of premises is not considered as a dispute but if the landlord raises a ground for eviction under the suit which is a matter of dispute between the landlord and the tenant, then the court will be bound to direct the party to go for arbitration first to sort out the said dispute and then approach the court. otherwise eviction is not a dispute under Arbitration.
ASHOK KUMAR AGARWAL
(Querist) 18 December 2008
The arbitrator used to receive the rent on behalf of the landlord.The arbitrator had directed the landlord to give necessary papers to the tenant for smooth running of his factory to which the landlord kept on ignoring.Being fed up of all this the arbitrator had resigned and the landlord taking advt of the sitution filed a suit for eviction.
anantha krishna n.v. Advocate
(Expert) 20 December 2008
At the first instance, a party seeking resolution of dispute by arbitration shall cause a notice seeking appointment. There is no reference to this aspect at all in yur post. As rightly pointed out by my other friend, it appears you named some one as arbitrator. This is not a permanent appointment. You need to refer the matter AS AND WHEN A DISPUTE ARISES.
Even otherwise, when both parties are ready for settlement, even in the absence of an arbiration clause, it may be referred to arbitrtion by mutual consent.
In fact, this would be a wise decision, so to say because you would be saving lot of time, energy and money, and also continue to have a cordial relationship with your adversary.
ASHOK KUMAR AGARWAL
(Querist) 20 December 2008
The clause of Arbitration is as :-
" Any disputes or differences between the parties hereto as to the effect,interpration or application of this tenenacy agreement or as to their rights,duties,liablilities thereunder or as to any act matter or thing arising out of or consequent to or in connection with this tenancy agreement shall be referred to and finally resolved by the sole aribtrator Mr X.The arbitration proceedings shall be in accordance with the provisions of the Arbitration & Concillation Act 1996 or any subsequent enactment or amendment thereof"
Manish Singh
(Expert) 22 December 2008
you are already answered so tell us waht else you wish to know.
