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SC held that arbitration clause is defective file a recovery suit


03-May-2023 (In Arbitration Law)
I had a contract with some exporter to export rice in Madagascar,the contract was having a clause of Arbitration which was included by the exporter. When the dispute arose,I found that the International Chamber of Commerce & Industry,New Delhi doesn't exist anywhere. I filed an Arb.Petition in SC the SC held that your arbitration clause is defective file a recovery suit. Pls suggest what do I need to do now?
Answers (4)

Answer #1
595 votes
Arbitration is one of the mode of recovery and if it is not applicable due to defective clause you have to exhaust other procedure for recovery. Accordingly you will have to file recovery suit against them before the appropriate court for relief. for further advice you need to personally come and explain the facts and situation than only I can advice you properly.
Answer #2
561 votes
It will be good to have a look at the SC order. Based on your narrative, it can be suggested that when the SC has specific finding about arbitration clause being defective, it's better to follow SC directive and to file a recovery suit.
Answer #3
520 votes
If you had filed a SLP and this the order you got from the SC then follow that. To answer your query fully I will need to look at your facts at large in order to advise you effectly. This will help you to have a effective legal advise
Answer #4
608 votes
First, you may wish to discuss with him in case this was a situation of an honest mistake, and rectify the arbitration clause through mutual consent, before referring it to the appropriate body. However, if the exporter is not agreeing, you may file a petition under Section 11 of the Arbitration Act, 1996 before the High Court of Delhi to have the court appoint an arbitrator to resolve your issues since the agreement contemplated both parties agreeing to arbitration. However, further details may only be provided upon a review of the agreement.

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