Arbitration
Navi
(Querist) 21 January 2015
This query is : Resolved
PARTY A APPROACHES ICA FOR APPOINTING A SOLE ARBITRATOR REGARDING A DISPUTE WITH PARTY B AS PER AGREEMENT CLAUSE. ICA APPOINTS A SOLE ARBITRATOR AND PARTY A PAYS THE REGISTRATION FEES. ARBITRATOR NOTICES PARTY B FOR REPLY TO CLAIM BY PARTY A. BUT PARTY B DOESN'T RESPOND. MEANWHILE PARTY A FOUND PARTY B STEALING ITS MATERIAL FROM A CONSTRUCTION SITE SO REPORTED AND GOT FIR REGISTERED AGAINST PARTY B. WHILE INVESTIGATION IT WAS FOUND PARTY B HAD FORGED AND FABRICATED THE DOCUMENTS OF GOVERNMENT AS IT DID NOT HAVE PERMISSION TO EXECUTE AGREEMENT WITH PARTY A. SO FIR UNDER SECTION 420,380,465,467,468,471,120 B WAS LODGED. PARTY B TWICE APPROACHED HIGH COURT FOR QUASHING OF FIR BUT PETITIONS GOT DISMISSED AND STRICT COMPLIANCE TO TRIAL COURT WAS ORDERED.
MEANWHILE PARTY B NOW APPROACHED SOLE ARBITRATOR AND FILED COUNTER CLAIM. SO PARTY A INFORMED THAT AS AGREEMENT BY LOCAL POLICE WAS FOUND TO BE FORGED AND FABRICATED SO AGREEMENT BETWEEN PARTIES A & B IS NULL & VOID AB-INITIO SO ARBITRATION CANNOT BE CARRIED.
SOLE ARBITRATOR GAVE EXPARTE AWARD IN FAVOR OF PARTY B STATING THAT PARTY A HAS WITHDRAWN ITS CLAIM
BUT PARTY A NEVER WITHDREW ITS CLAIM RATHER INFORMED ARBITRATOR THAT AS AGREEMENT BY LOCAL POLICE WAS FOUND TO BE FORGED AND FABRICATED SO AGREEMENT BETWEEN PARTIES A & B IS NULL & VOID AB-INITIO SO ARBITRATION CANNOT BE CARRIED SO NOW PARTY A FILED PETITION IN HIGH COURT FOR SETTING ASIDE ARBITRATION AWARD UNDER SECTION 34 OF ACT WHERE PARTY B WAS NOTICED. PARTY B CLAIMS THAT ARBITRATION AWARD CANNOT BE APPEALED.
SO I WOULD LIKE TO ASK THAT WHILE A TRIAL PROCEEDINGS FOR FORGERY & FABRICATION OF AN AGREEMENT ARE UNDER PROCESS, CAN ARBITRATION BE CARRIED ACCORDING TO CLAUSE OF AGREEMENT WHICH IS NULL & VOID AB INITIO AS ITS FORGED FOR WHICH TRIAL IS PENDING FROM PAST 2 YEARS
ajay sethi
(Expert) 21 January 2015
arbitrator can decide the issue as to whether arbitration is maintainable or not as per the agreement . award has been passed by arbitrator . if any party is aggrieved by the award can move court for setting aside award
Navi
(Querist) 21 January 2015
Mr.Sethi
Thankyou for your response. Trial of FIR U/s 420,465,467,468,471 IPC is under process. Quashing Petition from High court for same FIR has been dismissed twice.
Now this issue was raised before Arbitrator who took it as a withdrawl of claim and gave exparte Counter claim stating agreement is valid.
Now according to award, contract is valid and if in future while trial it is proved that agreement was forged & fabricated thus null & void which makes Arbitration clause also void ab initio then..
In this case already high court has been approached to set aside exparte arbitral award as trial is under process and claimaint never withdrew its claim and was proceeded exparte...
please guide now according to you arbitrator has given exparte award which says that contract is valid then that means there is no need of trial which is being conducted in court from past 2 years
Devajyoti Barman
(Expert) 21 January 2015
You seem to be aggrieved by the award.
If so then challenge it court u/s 34 of the Act. There is no point in venting your frustration here.
