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Procedure to enter into post dispute arbitration agreement with bank

Hi, We have a dispute with bank but there is no arbitration clause in the loan agreement. I understand that both parties need to enter into written agreement for arbitration. Assuming, bank is also open to arbitration, what is the process to enter a post -dispute arbitration agreement and what are the things we should be careful about. Thanks for comments.

Answers (5)

if you want to enter into a post-dispute arbitration agreement then there should be a written arbitration agreement between the parties. The arbitration agreement will include the terms relating to the appointment of arbitrators, qualification of arbitrators, venue of arbitration, the procedure to be followed in arbitration proceedings, cost of arbitration etc. Arbitration agreement needs to be drafted carefully because the terms and condition mentioned in the arbitration agreement will be the guiding light for conducting the arbitration proceeding.

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A post-dispute arbitration agreement means that an issue has arisen that could lead to litigation, but the parties instead decide to make an agreement to submit the case to binding arbitration. A post dispute arbitration agreement is different from a pre-dispute arbitration agreement or arbitration clause found in a contract, because a pre-dispute agreement is used before and in case an issue arises. A post-dispute arbitration agreement is used afterward. This means when the parties sign one, they know for sure they are actually going to end up in arbitration.

Understanding a Post-Dispute Arbitration Agreement

Parties who are involved in some kind of legal dispute may choose to sign a post-dispute arbitration agreement for several reasons. For one, as a form of alternative dispute resolution, arbitration may be less contentious than courtroom litigation. The arbitration process often resolves disputes faster than litigation. Arbitration may also be less expensive than a full, protracted, drawn out court battle. Furthermore, and perhaps most importantly to some, when a dispute is arbitrated, private matters remain private instead of becoming court record.

A post-dispute arbitration agreement can also be made in many different types of situations. A divorcing couple may decide to sign a post-dispute arbitration agreement if they can't work out a property settlement or custody division in their divorce. A company who is having a dispute with a customer or client may decide arbitration will be a more equitable way of resolving their issue and still be able to maintain a business relationship. Whatever the reason, once the parties agree and arbitrate an issue, the arbitrator's decision is binding on them.

Getting Help

Before signing a post-dispute arbitration agreement, be sure to get proper legal advice from an attorney who can advise you on whether or not signing is the best course of action.

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You can simply exchange emails or letters agreeing to go for arbitration. Or you can enter into a formal written agreement. Written consent of the Bank to agree to arbitrate is key. Kindly also Section 7 of the Arbitration Act. It is self explanatory.

If there is no arbitration clause, both parties can settle the dispute through legal aid services DLSA and can settle the dispute If the parties are willing to settle during pendency of case then also they can request the judge for meditation

Hello client hru .
I have read Ur full query.in have read Ur problem I need to understand the over all.problem I need to u know the details of the issue in this issue we can put your issue In the clause of arbitration but there is need of some of the facts to be understand in detail then only it is possible.

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