Arbitration Clause & SC Ruling
Querist :
Anonymous
(Querist) 18 May 2011
This query is : Open
The interest on delayed payments to Small Scale & Ancillaray Industrial Undertakings Act, 1993. Under this Act the loal Industry Facilitation Council, Commissioner of Inds.A.P.is conducting Arbitration proceedings as per section 25(a,b,c)of Arbitration & Conciliation Act 1966, with reference to Sec.23 Cl.1of Arbitration Act.
Under Cl.7 "Appeal" of Delayed Payment Act of 1993 it reads:No appeal against any decree,award or other order shall be entertained by any court or other authority unless the appellant (not being a supplier) has deposited with it seventy -five per cent of the amount in terms of the decree award or , as the case may be, other order in the manner directed by such court or, as the case may be such authority.
This clause puts undue hardship to the buyer(respondent) when the respondent has a reason to believe that the arbitration proceedings are not conducted properly or sufficient opportunity is not given to the respondent to defend his case.
Pease give your opinion in the light of the recent suprement court ruling in the case of Union of India & Ors Vs.Tantia Construction Pvtd.Ltd.,...that the consitutional powers vested in the High Court or the Supreme Court can not be fettered by any alternataive remedy available to the authorities. Injustice whenever and wherever it takes place, has to be struck down as an anathema to the rule of law and the provisions of the Constitution.
