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Arbitration

(Querist) 28 October 2008 This query is : Resolved 
In an agreement to construct a flat, the builder has inserted a clause which has the following phrases
1. in the event of disagreement or dispute between the builder and the client, the issue will be referred for arbitration
2. that the client has no objection to such arbitrators being nominated by the builder unilaterally without seeking consent of the client
3. Such arbitrators may even be employees of the builder's firm.
Of three, the third seems patently against the laws of natural justice: 'no man shall be a judge in his own case'. However is there any thing in the arbitration act or in case law that explicitly forbids this.
H. S. Thukral (Expert) 28 October 2008
An Arbitration Agreement requires consent of both parties. Why should you agree to such an agreement. If you agree, then where is illegality?
Murali Krishna (Expert) 28 October 2008
No. A&C Act does not prohibit any such clause. The reason simply because that it is an agreement between the parties eyes wide open. Once agreed to that clause, you cannot say that it is against PNJ or such arbitrator will act biasedly against you etc.

Arbitrator has to act according to any agreed procedure or in accordance with A&C Act. If the award is without reasons, or against the public policy of the land, contrary to any laws, Acts, you can challenge the award within 90 days from the date of award.
mintu (Expert) 31 October 2008
Yes

above suggestions/advices are right and not required any further explanations.

Mintu kumar
mintu (Expert) 31 October 2008
Yes

above suggestions/advices are right and not required any further explanations.

Mintu kumar
Suresh Venkatraman (Querist) 01 November 2008
My sincere thanks to M/s Harbhajan Thukral, Murali Krishna and Mintu (?!) (Sir/Madam - why not use your real name - this is a professional forum not a social networking site with the associated risks)


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