12 June 2009
As per section 28 of the Contract Act, any contract abosolutely restricting the legal rights are void to the extent of that restriction.
However, if both parties to the contract, agreed to resolve the proceedings through Arbitration, can any party go beyond that and may file a legal case on any disputed matter to the Court / High Court.
Further my second question is that,
4-5 companies have executed contracts seperately with GOI. They have also formed an association for their benefit of them and to protect their interest against any deteriment. that association is not the party to the contract.
Can that association file a case against GOI against any dispute if arises i.e. can that association being association of all 4-5 companies be a party to the contract.
If yes, can it file a case in the High Court when the parties agree to resolve the matter through arbitration only.
If there is an arbitration clause in the agreement than none of the parties can go to the civil court. As far as the association is concerned it is not the party in the contract and hence cannot sue GOI.