Arbitration
Rajan
(Querist) 02 May 2014
This query is : Resolved
Sirs,
1. Can you kindly advice if a defaulter of statutory requirements in subcontract be eligible for issuing arbitration notice when he has failed to comply with statutory requirements such as labor licence, EPF, ESI and minimum salary for his contract labors.
2. Can the contractor terminate his contract for not complying the statutory requirements inspite of issuing many letters to the subcontractor
ajay sethi
(Expert) 02 May 2014
academic query . state facts f your case .if contract provides for arbitration then in event of disputes it can be invoked
Sankaranarayanan
(Expert) 02 May 2014
What is the real fact of the case disclose ,
Rajan
(Querist) 02 May 2014
Thank you
My friend has subcontracted a part of the drilling work to a subcontractor. However inspite of request and letters to the sub contractor to submit the compliance of the statutory requirements such as labor licence, EPF challan, ESI or Worksmen medical cover, he failed to submit any of the statutory requirements including the minimum wages paid to his labors. In the meantime the labors contacted local union and they issued the notice to my friend to collect and show them the proof, since the subcontractor could not show the proof or submit the documents, my friend has terminated the sub contract with the notice period as per the agreement for not submitting the document.
After nearly 50 days after termination, the subcontractor has issued a lawyers notice for arbitration, as there is a clause of arbitration in the agreement for operational disputes
Kindly confirm if someone defaults the compliance of statutory requirements, can he invoke and take cover under arbitration .
Rajan
(Querist) 02 May 2014
Thank you
My friend has subcontracted a part of the drilling work to a subcontractor. However inspite of request and letters to the sub contractor to submit the compliance of the statutory requirements such as labor licence, EPF challan, ESI or Worksmen medical cover, he failed to submit any of the statutory requirements including the minimum wages paid to his labors. In the meantime the labors contacted local union and they issued the notice to my friend to collect and show them the proof, since the subcontractor could not show the proof or submit the documents, my friend has terminated the sub contract with the notice period as per the agreement for not submitting the document.
After nearly 50 days after termination, the subcontractor has issued a lawyers notice for arbitration, as there is a clause of arbitration in the agreement for operational disputes
Kindly confirm if someone defaults the compliance of statutory requirements, can he invoke and take cover under arbitration .
ajay sethi
(Expert) 02 May 2014
since contract was signed by parties it is binding . as per contract in event of any disputes issues should be referred to arbitration . let sub contractor submit his statement of claim . in your defence raise the plea that you have no option but to terminate contract on account of failure to submit documents called for
