My client was a dealer of a reputed co. Entered into an agreement for dealership for 3 years, time period 2003-2006. Period over in 2006. Clause in the agreement say disputes to be resolved through arbitration. Security deposit of about one lakh was paid at the time of signining the agreement to co. After completion of contract in 2006 co. did not returned S/d.On writing several letters which are received to co.(we have AD slip) but neither replied neither paid or objected to. One legal notice was issued that was also not replied .Ultimately taking resource to Arbitration Clause sent first notice to settle the issue within 30 days (as per Arb Clause)did not replied .Ultimately final notice to appoint arbitrator was given addressing its HO and Local office. Which was replied ultimately saying after completion contrat in 2006 you have never claimed or sued therefore now there is no agreement and so no need to appoint arbitrator. At this belated stage after several years reply that on the contrary co. has to get from you 1,70,000 and u should pay 70,000 towards the material not credited. Client has credited material and he has acknowledgments also.In fact co.being a International and big concern disowning the payment creating illegitimate excuses.For me now questions are..
1. to reply notice and ask for arbitration?I am in doubt whether arbitrator (one b yco.only is to be appointed) will deliver justice or will act merely as an officer of co.
2. File civil suit for refund of S/D in local civil court? when in reply to notice co. says no agreement no arbitration , on that basis whether I can succeed in civil court .At that time co. defense of arbitration clause will succeed.?Expert pl opine with case law.
several letters and notices are actually written and many times client visited office also but in vain.
Experts are requested to guide me. Pl give some case law as to whether after completion of 3 or 5 years the contract is time barred we can not do anything?
or till the S/D is not refunded contract continues.
