Nishit Jogani (b) 29 September 2010

Service agreement with arbitrator clause

I joined a company in hyd and i work from mumbai.

My boss interviewd me for a marketing position based on my resume and he did not mention anything about what will be my current role in the department, assuming it will be the same. In short im cheated as my career intrest and goal are the ones which i had experience from and they did not say that it will be all about going on field and talking to people and do direct marketing, in short its cheating right?

Now the work is all different then what he interviewd me for, they took my tenth certificate, which i dnt care

but i want to leave this company., i dnt seek any reliving letter or anything as i just joined n i can leave but the problem is that i signed a service agreement in which there is no mention of company incurring any kind of cost for me or any training cost. but mentions rs. 1 lakh as liquidated charges, it has normal clauses and ARBITRATION CLAUSE... it states that

"all disputes arising under, in connection with and in relation to this agreement shall be resloved by way of arbitration under arbitration and conciliation act 1996, through a sole arbirator appointed by the company. the award passed by the arbitrator shall be binding on the parties therto.

the venue of arbirtration will be hyd and the courts of hyd shall have the exclusive jurisdiction"

MY QUESTION IS... ARBITRATOR CAN BE BIASED AND I WILL NOT GET TO PUT MY CASE FORWARD...

WHAT CAN I DO? IS THIS ALLOWED TO DO IN SERVICE BOND AGREEMENT? PLZ KINDLY HELP

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3 Replies

Bayya Reddy (Legal executive ) 30 September 2010

Dear Jogani any how you have the Arbitration caluse in the agreement so you can explain your grievence before the Arbitrator, all Arbitrators are not biased, after that you have other option also that is to file a case before the jurisdictional court .........

chandrasekkar c k (advocate) 01 October 2010

when there is an arbitration clause you are bound by it. not all arbitrators are biased. however if you place your submissions in writing(which you will necessarily do) before the arbitrator he has to give reasons if he is to differ from your contentions. and you always have appeal remedies thereafter. but ensure that your position is safe, switch over to another employment and then challenge it so that you are not left i the lurch.

Nishit Jogani (b) 01 October 2010

I have lot of questions if anyone can please answer it...

My agreement is completely one sided and there is no investment mentioned for me in any kind so isnt my case strong?

how can i prove the point that "breach of trust in job descripttion, my mails of work will be usefull?"

how expensive will be the procedure for them, i heared appointing a arbitrar is not easy. u have to appoint a lawyer and then apply for arbitrar and then it takes couple of months... generally compaines go for such procedure even if the liquidated charges mentioned is 1 lakh.

if i loose the case will the judge ask them to give sensible explaination and proof for charges?

what about practical cases happend... i heared that court normally dont entertain such one sided contract, same happens with arbirtars?

any lawyer can tell me how much they might charge for this case? and how do they charge? per case basis or per date summoning in court? how often i will have to come to hyd if the case is on going... date comes every week or every month? as the judriction is only for hyd city and im in mumbai..

thanks in advance
plz help.