Cost of Arbitration
SUNDEEP
(Querist) 02 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
KamalNayanSaxena
(Expert) 06 January 2009
In aforementioned circumstances you are not bound to pay the cost of arbitration. Your company will bear it.
