Upgrad LLM

arbitration


when a legal agreement contains arbitration clause and how one can file a civil suit? 

 
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If the dispute is not the one covered under the arbitration clause then one may file a civil suit.

Regards,
Rit Arora
Advocate
7838737001

 
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Legal Secretary

What about having Arbitration Clause in an appointment letter....

and the employee who should ideally approach a labour court... is opposed since there is a arbitration clause in the appointment letter

regards

 

 
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FIN

@ Sarvesh,

Mr. Rit Arora has already suggested.

 
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FIN

@ Simi,

Replied at;

http://www.lawyersclubindia.com/forum/Arbitration-for-industrial-dispute-between-an-employee-and-company-142070.asp

 

 

 
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ID Act, 1947 is a special legislation and generally would override such agreement between parties. The law was passed having considered such situation. 

 
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the employer may not be able to avoid liaility.

 
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Legal Secretary

Thanks Rit ji...

So are you trying to say, even though in an appointment letter such a clause is mentioned... and the case is registered in Labour court..

Can the employee say that it was necessary to sign since he had to join the company, and the he had no other option at that point of time....

Will it favour the employee ?

 
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FIN

The descripttion in the Act and illustration at the link is self explanatory. Both parties have agreed in writing. The matter in Industrial dispute should be covered as described in the sections and clauses in Act.
 
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Lawyer

Arbitration Clause in an appointment letter indicates that in event of any dispute arising out of the terms that form part and parcel of the appointment letter, such dispute can only be solved by appointmentof arbitrator. 

So for example- if there is a dispute like unfair labour practise, one has to file Complaint (ULP) before the Industrial Court.Only terms in the appointment letter if breached will have to be resolved by invoking arbitration i.e., appointing an Arbitrator.

 

 
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