Arbitration Drafts

Registered A.D. From: ............................ .…..……………… …………………… To…………………… …………………… Dear Sir, Conciliation of disputes   1. Please refer to your letter suggesting to settle the disputes arisen between us in respect of the partnership business carried on by us in partnership under the name and style of M/s…………at……………under Agreement of partnership dated ……………………     2. I hereby invite you to commence conciliation proceedings to settle our disputes with the assistance of Shri ……………… who may act as conciliator. Shri …………the proposed conciliator has given his consent to act as conciliator to conciliate the disputes arisen between us. If you accept the proposal for conciliation, an agreement may be executed between us for referring t he disputes to conciliation. 3. You are requested to please communicate your acceptance about the invitation to conciliation within a period of one month from the date of issue of this letter, failing which it will be presumed that you have rejected the invitation for conciliation of disputes.  Yours faithfully,

IN THE COURT OF THE.................... Suit No..................... of 19.................... C. D.................................................................... Plaintiff versus C. F................................................................. Defendant The abovenamed plaintiff most respectfully submits as under: — 1. On the.................... day of.................... 19...................., the plaintiff and defendant, having a difference between them concerning a demand of the plaintiff for the price often barrels of oil which the defendant refused to pay, agreed in writing to submit the difference to the arbitration of.................. and.................., and the original document is annexed hereto. 2. On the.................... day of.................... 19..................... the arbitrators awarded that the defendant should pay the plaintiff.................... rupees. 2. The defendant has not paid the money. 3. The cause of action arose on.................... 19.................... when the defendant refused to pay the money, and this Court has jurisdiction to try the suit. 5. The suit is valued at.................... rupees, the money awarded by the arbitration and the interest thereon at the rate of............. % per annum, and court fee is paid thereon. RELIEF CLAIMED: The relief claimed by way of this suit is that this Court may be pleased to make the award the rule of the Court and decree the amount awarded by the Arbitration with interest at the rate of.............. % per annum. Plaintiff Through Advocate VERIFICATION I, abovenamed plaintiff, do hereby verify that the contents of paras .................... to.................... of the plaint are true to my personal knowledge and those of paras.................... and.................... thereof are based on legal advice which I believe to be true. Verified on this................. day of.................... 19.................... at.................... Plaintiff CASE LAW OF APPEAL AGAINST AWARD. Appellant is entitled to file appeal without being required to make deposit under Section 173 of Motor Vehicles Act against award passed in a petition instituted under Old Motor Vehicle Act of 1939.1 VALIDITY OF AWARD. The validity of avard made under the Act can be challenged only within the parameters of the Act.2 There are four essential conditions necessary to make the Section 20 of the Act applicable. They are: — (i) The parties must have entered into an arbitration agreement. (ii) The agreement must have been entered into before a suit with respect to its subject matter is filed in court. (iii) A dispute or difference, contemplated in the agreement, must have arisen; and (iv) The court has jurisdiction in the matter.3 ARBITRATION AND CONCILIATION ACT, 1996 SECTION 8 — PENDENCY OF APPEAL — REFERENCE OF MATTER TO ARBITRATION During pendency of appeal matter can be referred to arbitration.4 INTERIM ORDERS BY COURT — SECTION 21 Under the Arbitration and Conciliation Act, 1996 the Court can pass interim order under Section 9 even before the Commencement of arbitral proceedings.5 APPOINTMENT OF ARBITRATOR BY CHIEF JUSTICE OF HIGH COURT UNDER SECTION 11(6) OF ARBITRATION AND CONCILIATION ACT, 1996. Orders passed by the Chief Justice under section 11 (6) of the Arbitration and Conciliation Act, 1996 being of an administrative nature cannot be subjected to any challenge directly under Article 136 of the Constitution of India.6 STATE OF PROCEEDINGS Proceedings under Section 11 of the Arbitration and Conciliation Act are not liable to be stayed on account of respondent having been declared a sick company under Section 22 of Sick Industrial Companies Act.7 ARBITRATION AND CONCILIATION ACT, 1996 EXISTENCE OF ARBITRATION CLAUSE The jurisdiction of the Chief Justice of India or his designate to decide the question as to the existence of the arbitration clause cannot be doubted and cannot be said to be excluded by Section 16 of Arbitration and Conciliation Act, 1996.8 PROVISIONS OF 1996 ACT — CANNOT BE OPERATED RETROSPECTIVELY The provisions of the Arbitration and Reconciliation Act 1996 cannot be operated retrospectively in view of section 85(1) of the Act.9 1. Ramesh Singh v. Chinta Devi, 1996 (5) Supreme 153. 2. State of Bihar v. Shri Gopal Chandra Palit, 1996 (2) C. C. C. 242 (Pat. ). 3. M/s. Meena Engineering & Contractor Pvt. Ltd. v. Municipal Corporation of Greater Bombay, 1996 (3) C. C. C. 152 (Bom. ). 4. P. Anand Gopapathi Raju v. P. V. G. Raju, AIR 2000 SC 1886. 5. M/s. Sundaram Finance Ltd. v. M/s. NEPC India Ltd., AIR 1999 SC 565. 6. Ador Samia Pvt. Ltd. v. Peekay Holdings Ltd.. AIR 1999 SC 3246. 7. 1TC Hotels Ltd. v. Amitabh Bachchan Corporation Ltd., 2001 (4) CCC 65 (Del. ). 8. Wellington Associates Ltd. v. Kirti Mehta, AIR 2000 SC 1379. 9. Rajputana Hotels Pvt. Ltd. v. Pradeep Kumar Sriya, 2000 (1) CCC 178 (Raj. ). APPLICATION UNDER SECTION 34 OF THE ARBITRATION ACT IN THE COURT OF......................................... Suit No..................... of 200 In the Matter of: AB..................................................................... Plaintiff versus CD................................................................. Defendant Most Respectfully Showeth: - 1. That the plaintiff has filed the present suit for impleading the applicant as defendant. This Honble Court has fixed.................... for filing the written statement. 2. That as per Arbitration agreement entered into between the plaintiff and the defendant, it was agreed that in case of difference the matter may. be referred to Arbitrator to be appointed with the consent of both the parties. 3. That the matters in difference in the present suit are similar to the matters in difference referred to in the arbitration agreement. They should therefore have been first referred to an arbitrator to be appointed pursuant to the arbitration agreement. 4. That the plaintiff instead of referring the matters in dispute to the Arbitrator has filed the present suit. Since the plaintiff has filed the present proceedings in contravention of the terms of the Arbitration agreement, the proceedings of the present suit are liable to be stayed. 5. That the Applicant is ready and willing to do all things that are necessary for reference of dispute to Arbitrator as per the terms of the Arbitration Agreement. PRAYER It is most respectfully prayed that the proceedings in the suit be stayed on such terms and conditions as this Honble Court may deem fit and proper. It is prayed accordingly. Applicant Through Advocate Place:.................... Date:...................... IN THE COURT OF..................................... Suit No..................... /200 In the Matter of AB.................................................... Plaintiff/Petitioner versus CD............................................ Defendant/Respondent. AFFIDAVIT I................................................................................ resident of ......................................................................... do hereby solemnly affirm and declare as under: - 1. That I am the........................................... in this case and hence competent to swear this affidavit. 2. That the contents of the accompanying application are true and correct. DEPONENT VERIFICATION Verified at................................... on this................................... day of ..................................................... that the contents of the above affidavit are true and correct to my knowledge. DEPONENT. POWER TO GRANT INTEREST Section 34 Neither the arbitrator nor the court dealing with the validity of the award can award a higher rate of interest than the mutually agreed rate.1 1. Gautam Construction & Fisheries Ltd. v. National Bank for A. & R. Development, AIR 2000 SC 3018.

(i) Every dispute, difference, or question which may at any time arise between the parties hereto or any person claiming under them, touching or arising out of or in respect of this agreement (deed) or the subject matter thereof shall be referred to the arbitration of XY, etc. or if he shall be unable or unwilling to act, to another arbitrator to be agreed upon between the parties or failing agreement to be nominated byor, failing agreement to two arbitrators one to be appointed by each party to the difference (whether consisting of one or more than one person) and in case of difference of opinion between them to an umpire appointed by the said two arbitrators before entering on the reference and the decision of the arbitrator ( or such arbitrators, or umpire as the case may be) shall be final and binding on the parties. OR (ii) In the event of any dispute, difference or question arising out of or in respect of this agreement or the commission of any breach of any terms thereof or of compensation payable thereof or in any manner whatsoever in connection with it, the same shall be referred to the Chamber of Commerce.(or the Association of..) for arbitration as provided in Rules framed by the said Chamber (or Association) for the purpose. The decision or award so given shall be binding on the parties hereto. OR (iii) All disputes arising between the partners as to the interpretation, operation, or effect of any clause in this deed or any other difference arising between the partners, which cannot be mutually resolved, shall be referred to the arbitration offailing him to any other arbitrator chosen by the partners in writing. The decision of such an arbitrator shall be binding on the partners.