Query on arbitration

abhijit majumder (Querist) 10 September 2020 This query is : Resolved
To
Respected Experts
Our Company appointed a dealer for sale of its Meat products.
One clause in Dealership agreement inter alia states that " IN CASE OF DISPUTE BETWEEN THE PARTIES THE MATTER REFERRED TO ARBITRATION............................etc.".

The Company supply meat products(Rs.6,00,000.00 approx) to the dealer. He received it by signing the challan.
But after expiry of 5 months (as per agreement he have to pay within 1 month of delivery) he had not paid the price for the products(Rs.6,00,000.00). Even after serving 2(Two) demand notice.

My query is
Is this case fall within the ambit of "DISPUTE" for arbitration clause?
If not then Is it essential to go for Arbitration?
And alternatively can the company file Money Suit against the defaulting party?(actually the company want to file money suit)

Regards
Abhijit

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Quick Summary

A company supplied meat products worth approximately £600,000 to a dealer who failed to pay within the agreed one month. After five months and two demand notices, the company is asking if this non-payment constitutes a 'dispute' under their dealership agreement's arbitration clause. Experts advise that if an arbitration clause exists, a recovery suit in civil court may not be possible, and the company might need to seek the appointment of an arbitrator under the Arbitration and Conciliation Act.

Dr J C Vashista (Expert) 11 September 2020
What is your locus standi / concern to the facts / post ?

Advocate Bhartesh goyal (Expert) 11 September 2020
If the clause " In case of dispute between the parties the matter will be referred to arbitrator " exists in agreement then you cannot file recovery suit before civil court.Your matter comes under the ambit of Arbitration and Conciliation Act and you have to approach H.C for getting appointment of arbitrator u/s 11 ( 6 ) of Arbitration and Conciliation Act.

Rajendra K Goyal (Expert) 13 September 2020
Agree with the expert Advocate Bhartesh goyal.

abhijit majumder (Querist) 14 September 2020
Thanks
To all the experts for their (particularly to Sir Bhartesh Goyal) valuable comments .
Regards
Abhijit

Rajendra K Goyal (Expert) 14 September 2020
You are welcome, may revert in case of any further query.

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