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michelle ann (computer engr )     02 April 2010

arbitration

Good day i had undergone training with an company based in hyd,i could not join back after training due to my posting in a different city as i was pregnant i had requested for a transfer to chennai for which they never replied back.They had terminated me from work and later claimed for the bond amount,i am currently unemployed cos i was selected in the campus interview.After 2 long years the company has send notice for an arbitration How good is this arbitration for me and will i be benefitted out of this,How have the previous cases studies been awarded.? i am willing to work in the same company again cos right now my kid is grown,what are the chances that the arbitration may result in my employment in the company.


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 9 Replies

Gundlapallis (Advocate)     03 April 2010

Unless we know, what and what conditions you are committed into through the bond - its difficult to advice you.  But in general the duty of the Arbitrator to settle the issue through mutual conciliation and if no conciliation is possible he can write his award according to his prudence.

CS Pooja (Company Secretary)     09 April 2010

Arbitration is generally preferred over knocking the Court's door.

Plus, it saves time, efforts and money.

An Arbitral award is deemed to be the decree of Court and is enforceable.

All the best!!

Chanchal Nag Chowdhury (Advocate)     10 May 2010

It all depends on the arbtrn. agrmt. This may be a trap. Beware. If U R interested in arbn., be careful and be sure of the antecedents, background & relationship of arbitrator with employer.

Vineet (Director)     15 May 2010

Do agree with Mr Chowdhary. Was there any clause for arbitration in your employment contract.

 

If no, this may be a ploy by the company to obtain a favourable order from a known arbitrator and thus close all legal remedies available to you. Arbitration is a good and cheap dispute resolution plateform but you need a neutral arbitrator.

sanjay kumar (BE/ LLM in Corporate Laws)     17 May 2010

Your case is a borderline case but you may try the Arbitration route.

You had not resigned from your job but you had only asked for the transfer. However, the company terminated your service and claimed the Bond amount also.

In case you are willing to join the company, you may tell this fact to the arbitrator because the first duty of the Arbitrator is concilliation. However, you may have to see what terms company offers to you.

So have a try and hope that everything will turn to be good.

sanjay kumar (BE/ LLM in Corporate Laws)     17 May 2010

I have a difference of opinion with Mr.Vineet here.

Even if there was no clause of Arbitration in the Employment Contract(most probably it will be not), the contract can be amended if both the parties agree to. May be company has realised its mistake of forefieting the Bond amount and offered the route of arbitration. Thats one thing.

Secondly, an Arbitrator's award can be challenged in Court by the aggrieved party. So all legal remedies are still available.

Vineet (Director)     18 May 2010

I do agree that if parties agree, arbitration can be invoked without any such clause in th agreement. The moot question is as to why the company has asked for arbitration after two years even without having any clasue for the same and neither any legal claim has been made against them. Without any clause, who will decide the arbitral tribunal and considerinhg the precarious situation in which the querist is, I doubt whether she will have any say in the matter. Yes arbitration is supposed to be a fast and cheap alternative remedy in commercial disputes, my practical experience does not support it. I do not know whether any provision to appeal against the arbitral award is there in law and would be glad to learn about it. Yes an application u/s 34 lies for setting aside the award on certain grounds of incapacity, lack of jurisdiction etc but certainly not on merits of award. my practical suggestion to querist is to talk to the comapny and know what they actually want by their offer for arbitration and settle rather than wasting further time and money on arbitration and later a legal bettle. If you to ultimately fight it out in court only, why waste money in arbitration as at present you are not compelled for arbitration.

Vineet (Director)     18 May 2010

From the facts stated by you Ms Ann, it appears that company has sent you arbitration notice for claim of bond amount. That means the bond amount has so far not been recovered by them and they somehow want to get it through a cheaper mode. If that is the case please write the correct facts to get a better and more informed advice.

Prem Krishanan ( Legal)     25 May 2010

Dear michelle, I understand that you are endaunted with many views for your problem, to top it up, i give you my view on this. I would suggest that you  read through the appointment agreemnt given to you by the company, and also the Bond agreement throughly, because your case depends on this documents. You have mentioned that you have undergone training and subsequetly you have been eminated because you coukld not job the company in the given time period, this could be totally aganist you.

I hope you had given  for a request for transfer to your city in writing, becuase this will be of material to prove your case. secondly you must be sure that they ahave claimed the bund amount or not and that you have not vioated ny further clauses in the emloyment agreement of bond.

Arbitration is quite tricky, for one thing that, if it talks of a sole arbitrator and tat too a arbitrator appointed by the employer then it will be one sided and you will be foreced to challange the abitration award let you are ready to sttle the matter with the company directly.
 


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