Arbitration and conciliation Act 1996
SUNDEEP
(Querist) 15 January 2009
This query is : Resolved
To all Happy New Year
I was working with a company with whom at the time of joining I have signed an agreement on company letter head where one clause was that in case of dispute the arbitrator shall be appointed by the chairman of the company. Later on teh company has broke teh agreement signed tehrefore I also quit the company. Now the company is allegating me for broking he agreement. When I refused to pay for the compensation the company suo moto has appointed an arbitrator. I dont know what is the fees amount to be paid or what is the agreement with the company for such appointment. Now I have received a letter from the arbitrator that the 50% of the arbitrator has to be paid by me.
My stand is that the appointment of arbitrator is without my knowledge. The only letter recieved by me was that when the arbitrator has already been appointed. Also I dont know the fee to be paid to arbitrator. So how can i be made responsible for paying cost of arbitration.
Is thia true that the party seeking arbitration has to pay the cost of arbitration. There was no such clause in joining agreement as to cost of arbiration, i.e. who will bear the cost.
Can any body suggest me or the reference to act or relevant case law or section applicable to such situation.
I will wait for reply.
Thanks
A. A. JOSE
(Expert) 16 January 2009
Dear Mr.Sundeep,
From the facts narrated by you, it is clear that in terms of the agreement exected by and between you and your previous employer, the Arbtrator has been appointed and it is perfectly in order, unless you challenge the said appointment of arbitration. It is further clear that although according to you, it was the company who broke the agreement, you have not taken any steps against the company for the same, so far.
As regards costs, which includes fees & expenses of the arbitrator and witnesses, you may please refer section 31(8) of the Arbitration & Conciliation Act 1996 which provides that unless otherwise agreed by the parties, the costs of arbitration shall be fixed by the arbitral tribunal. Hope, matter is now clear to you.
Manish Singh
(Expert) 16 January 2009
Dear Mr. Sundeep,
dont panic. firstly fo through the agreement signed by you whetehr there was a provision related to arbitration and waht exactly it says. anyhw if its silent abt the appointment, a single party cant appoint an arbitrator without your consent so it can easily be revoked.
secondy, you say that the company has revoked the agreement so do u have any evidnce of the ame..? do provide detailed information.
