pkraksh (Lead) 04 October 2013

Arbitration award

Hello Experts,

I worked for a company for 6 years . They sent me to abroad for 2 months. Before Coming to abroad I signed a service agreement . According to that If I dont stay in the company of 10 months after return I have to pay Rs.1 Lakh to the company. I came to abroad and after one month I resigned from that company after spending a notice period of 15 days . and joined a new company .Orginal Norice period is 60 days . I sent a resignation email and they did not accept it. I was ready to pay the amount mentioned in service agreement. But thier main intention was to bring me back to India. So they filed a suit again me saying that I have learned many things in abroad visit and I should not join any new company and I should come back to India and serve the notice period. Second thing they sent an arbitration notice for the service agreement amount even though I was ready to pay earlier So that I have to come to India to attend arbitration.
I did not attend the arbitration . Now after few months, I received an arbitration award stating that I have to pay the service agreement amount. I m ready to pay the amount but I am not sure whether I will be getting the final settlements and the expirence letter. I m ready to pay service agreement amount if they are ready to settle.
Please advice on this. If company is not ready to give settlements and experience letter even after the settlement of damages. There is no point in paying. What will happen If I ignore the arbitration award whch was sent to me.

Thanks
Raksh

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2 Replies

T. Kalaiselvan, Advocate (Advocate) 04 October 2013

The arbitration award was decided in your absence, however if you are ready to settle the award amount wait until the company files an EP against you for recovery, in that EP you can state everything that happened to you including the refusal by the company to accept your explanations/resignation and to issue the experience certificate and also settle all dues to you. Wait until then and then proceed through your lawyer.

pkraksh (Lead) 05 October 2013

Thank you Sir.

Whether the company has any time limit from the arbitration award date to file an EP for Recovery. In addtion to that the service agreement states that 12 % annual interest of the amount they claim till the complete realisation . So If they file a recovery after three years will they file for the three years interest amount??

Also arbitration happened in another state since head office is at the other state..So none from my side could not attend that. If they file an EP , whether it will be in my state so that some representative can attend that on my behalf?

Thank you again