International arbitration
syed niaz ahmed shah
(Querist) 11 September 2013
This query is : Resolved
My friend used to do business in Dubai , but had to return as one of the bank deposited his security cheque which was not the amount he owed to the bank as he had paid much of its loan, and in order not to get arrested he left Dubai.
He had shops which also the landlords did not extend the lease period despite instructions of the rent committee, which also put him out of retail business.
Also he had invested in properties launched by Emaar but did not to this date start the project and refund of the same amount could also be taken up through these proceedings.
i want to know can he fight the bank and the landlord through Indian Arbitrator or International Arbitration and will it be legal to send approach lawyers in India to facilitate such Arbitration.
If so what procedure my friend has to follow.
ajay sethi
(Expert) 11 September 2013
agreement between bank and your friend for operation of bank account has to be seen . it must be providing for resolution of disputes . most probably it would be subject to dubai jurisdiction .
as far as projects launched by Emaar is concerned again the agreement signed with the company has to be considered . contact a local lawyer with the copies of agreement signed by you with Emaar
Guest
(Expert) 11 September 2013
Mr. Syed Niaz Ahmed Shah,
You have mixed up variety of unrelated problems in yur query. deposit of security cheque against bank loan has no relevance with the lease period of shops by the landlords or investment in property and non-start of property business projects, etc.
Further, you have not clarified whether that security cheque has already been cleared or got dishonoured?
However, about deposit of security cheque by bank, your statement, "he had paid much of its loan, and in order not to get arrested he left Dubai" reveals that your friend must have been defaulter in repayment of bank loan and he fled from Dubai just to avoid his arrest. So, I am unable to understand, how you or your friend would like to justify as to why the bank should not try to get its money realized out of the security cheque. Secondly, any bank cannot can have the authority to encash a check in part. Only full amount of the cheque can be realised once deposited for clearance. That way, your friend should have asked for refund of the amount that is in excess of his recoverable dues. If already requested, you have not pointed out what was the response of the bank on that request. So, unless response of the bank is made known, your question on arbitration with the bank cannot be answered.
About extension of lease period of the shops by the landlords your would need to file a case in the the appropriate court of Dubai or arbitration centre by presenting himself personally or through an advocate of Dubai only (Not Indian advocate).
About non-start of his property business at Dubai, nobody, except himself, can help to start his own business in Dubai by presonally going there from where he had fled due to the fear of his arrest.
Devajyoti Barman
(Expert) 11 September 2013
The arbitration agreement if executed with foreign company in foreign land can not be executed in India.
The Supreme Court very recently makes it clear.
Forget Dubai if you do not want to make further payment and settle in India.
Rajendra K Goyal
(Expert) 11 September 2013
Well advised by the experts, nothing more to add.
