Arbitration Clause - Doubts

Ms.Archna,

Your querries are hereunder :

1) IS THIS A UNILATERAL ARBITRATION CLAUSE?

The answer is negative as after due formatlities i.e. signing and execution it becomes bilateral and binding. 

2) THE COMPANY HERE IS PRIVATE/PARTNERSHIP FIRM.

3) CAN THIS ARBITRATION BE CHALLENGED?

The answer to this query is also negative as either one does not agree for the same as the whole agreement has to be read and this clause cannot be read in isolation, but even otherwise once the Agreement is signed it becomes operative, binding and could not be challenged subsequently.

Best Regards

Daksh 

Hi Daksh

Please see this - replies from 'your advocate'

Once the arbitration clause is signed by both the parties, it becomes bilateral as stated by Mr. Daksh above.

Anyone can sign the arbitration clause be it a Ltd Company, Pvt Ltd company, partnership or sole proprietorship firm.

The Award of Arbitrator can not be challenged however the proceedings of arbitration can be challenged.

Mr A K Puri

Citations/ Examples Please??

As I do not agree with you here - "The Award of Arbitrator can not be challenged however the proceedings of arbitration can be challenged."

Regards

Archna

Madam Archna

Award passed by Arbitrator  can only  challanged  by way of objections under sec 34 of Act but No appeal lies against Award.

I am fully agree with Mr. Goyal. An Arbitration Award can be challenged u/s 34 of the Arbitration Act on one or other grounds. Further as far as the query of Ms. Archana is concern, the said clause is appropriate enough to  cover the essential ingredients of arbitration clause with reference to place of arbitration and appointment of arbitrator. There is nothing to fear about it. Alternatively you can negotiate for “arbitration tribunal” if it is  feasible in present circumstances.