Arbitration proceedings - withdrawn . What is next possible alternative
tarun
(Querist) 15 September 2008
This query is : Resolved
we have specific arbitration clause relating to settlement of disputes between contractor and institution.
on non payment of installments institution sent notice to recover the amount with opportunity to hear. but not availed and no amount paid.
we cancelled the contract
contractor failed to challenge amount due or act of ours to cancel the contract
we invoked arbitration clause and withdrew as requested by us to do so on ground that we can recover under land revenue act
. and arbitrator allowed it saying to exhaust other remedies first before coming to him
now we started revenue proceedings and contractor is opposing it on ground of arbitration clause..
plz help
Manish Singh
(Expert) 15 September 2008
Dear Mr. Tarun,
the most important thing in Arbitration is that there must be a "dispute" concerning the matter.
If there is a dispute regarding the amount to be paid by the contractor then it can be settled by arbitration. If the amount is clear and no disput eis there on the said issue, then no arbitration shall take place instead u have to take remedy from appropiate laws.
H. S. Thukral
(Expert) 15 September 2008
As Manish said: Only disputes can be referred for Arbitration. Dispute is when one party asserts his right and the other denies it Here neither the contractor has cliamed anything nor you have stated that you claimed any damages for breach of contract. Hence there was no dispute to be referable to arbitration.
What are you recovering under the revenue proceedings?
tarun
(Querist) 16 September 2008
Mr. Manish correctly pointed out my issue.. we are raising the issue that the contractor is not disputing the amount to be claimed from him . he is only arguing against cancellation , arbitration clause and on other grounds that i was not provided with the opportunity before cancellation of the contract.
but we had for many times warned him that if u fail to pay 2nd and 3rd installment then contract will be cancelled as per the agreement. when he failed to pay 4th installment then we cancelled his contract.
in the present case - we are institution and other party is parking contractor. he failed to pay 3 installments which are in lakhs and after providing him warning ..we cancelled the contract. and after that litigation started
Manish Singh
(Expert) 16 September 2008
so, file a suit for recovery to get the money.
if there is a dispute concerning the cancellation of the agreement, it can be settled by arbitration.
both are separate issues since the first matter is not involved in the arbitration.
