harmahadev (employee) 26 May 2011

Arbitrators Award

I purchased a four wheeler heavy transport vehicle with a company financing for it. I paid some instalments on time and there after surrendered the vehicle due to the non payment of the balance instalments.The company sold the vehicle without informing us and after several days sent a notice that we have to pay nine lakh rupees. we didn't respond to that notice but again after some days we got a copy which is a decree awarded by an Arbitrator on behalf of the company to pay the amount with interest.The company neither called us for negotiation or neither we both had discussed about the amount which we had to pay to the company at any previous stage.Now,what is the procedure to be followed? Can the arbitral award of the Arbitrator be challenged? if so, how? what the evidences to be produced to prove that we have not been called for negotiations.Kindly advice,any one, who are well acquainted with the procedure.Thank You.

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3 Replies

Smita_L01042008 (student) 26 May 2011

the procedure to challenge the award is generally mentioned in the arbitration award itself.

you are required to first examine the arbitration award, ground on which the this award is passed like ex parte etc.

You need to examine1) appropriate grounds for filing appeal 2) time frame to file an appeal

1 ) the ground for appeal can be 1) the party was under incapacity 2) arbitration agreement was invalid 3) non receipt of notice of appointment of arbitrator or proceedings to enable you to present your case 4) the award is against the public policy as it is an impugned award etc.

Please go through section 34 of arbitration and conciliation act 1996 for those limited 7 ground to set aside an arbitration award.

Generally an appeal can be filed by either party within 30 days from the date of receipt of award at high court under section 34 of arbitration and conciliation act 1996.

Smita_L01042008 (student) 26 May 2011

further to earlier reply

Kindly note correction. the time for filing an appeal to set aside an award is 3 months from the date of receipt of award and not 30 days. please take note of the same

Hirdayanath M Kamble (Service) 26 May 2011

Kindly note that the award passed by the Arbitrator withou adhering to the principal of natural justice is in itself is a valid ground for appeal, get in touch with a good Advocate, who will guide you through.