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Krishnachandra (manager)     11 October 2012


Dear All,

A Project was handed over to Company - A by Company - B vide supply and service orders. Terms and conditions includes an arbitration clause, one arbitrator by each party and both arbitrators select an Umpire. Laws applicable to the arbitration procedures was in accordance with the laws of India. 

Now, Company - A invoked the arbitration clause for non-payment of dues and other serious issues. The Current scenario of this arbitration is that the umpire is yet to be selected.

Now my question is - Can Company - A move to the Court to file a suit or to get a restraining order, provided that it shall continue with the Arbitration Proceedings???

(Here, please note that no where in the general or special terms and conditions does the dispute resolution by way of Court is mentioned)

Request experts to comment.

K. C. Palai 


 3 Replies

H. S. Thukral (Lawyer)     11 October 2012

A can move to the court under section 9 of ACA for restraining order. No suit shall lie. 

Krishnachandra (manager)     11 October 2012

Thanks a lot Sir...

Just one more thing....

Totally depending on the Order by Court, Can Company - A try to get an order restraining the promoters / management  to sell Company - B in partial or in totality. Is this feasible?


K. C. Palai

H. S. Thukral (Lawyer)     11 October 2012

Pray for measures to secure the Award if made in favour of A. It can be incorporated in the sale/transfer agreement. 

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