Re : dispute resolution clause in service agreement
Arati Gawde
(Querist) 27 September 2013
This query is : Resolved
It is on the subject of Dispute resolution clause in Service Agreement.
In one Service Agreement it was mentioned “Jurisdiction” clause in which it was stated that “The Courts of Delhi / Mumbai shall have Jurisdiction over all matters arising out of or related to this Agreement “.And in another paragraph it was stated provision regarding Arbitration clause such as Number of Arbitrator, Venue & that Arbitration award shall be final. My queries are:
a.In such type of Agreement which dispute resolution is prevail whether Court decision Or Arbitrator?
b.In agreement it was mentioned that “The Arbitration award shall be final and binding upon the Parties” then can that Parties of the Agreement are in position to go to the Court if they first approach to Arbitrator?
Ms.Nirmala P.Rao
(Expert) 27 September 2013
Dear Client,
Both the clauses are valid and if there is a dispute and prayer for setting aside the arbitration award om grounds of bias etc- parties can approach the courts such as Bombay and Delhi High Court as in your case- as per your Contractual Terms & conditions. You can validly incorporate both the clauses, i.e., arbitration and jurisdiction of Courts clauses for dispute resolution. For disputes regarding certain terms of your contract-you can refer to arbitrators and for enforcing certain other terms you can approach courts. The concerned
Dist Court or High Court has to issue certificate on your application for appointment of arbitrator in the event of dispute.Anyway, you can't altogether exclude courts and their jurisdiction. However, if there is no dispute regarding the arbitratrators' award etc-the arbitrator's decision is final and binding on all the parties to the Contract. In order to be so -Get the contract providing for arbitration carefully drafted by a Legal
expert so it becomes final and binding.
