Open Access Research Article
REPORT ON STATE LEGAL SERVICE AUTHORITY AND ARBITRATION DISPUTES BETWEEN TWO PARTIE
Published Paper
Article Details
REPORT ON STATE LEGAL SERVICE
AUTHORITY AND ARBITRATION DISPUTES BETWEEN TWO PARTIE
AUTHORED BY
- ASHISH SHUKLA
Introduction of Arbitration:
“Arbitration is a form of Alternative Dispute
Resolution (ADR)”.
·
The
idea of arbitration is to settle disagreements between parties as soon as
possible without becoming bogged down
in the legalese involved in running a civil court.
·
"Hearing and determining a dispute between
the parties by a person or persons
chosen by the parties," according to the definition, is what
arbitration is.
·
Arbitration
may be mandated by the court or it may be voluntary, meaning that it is decided upon by the parties.
·
In
contrast to litigation, arbitration proceedings occur outside of court, the
arbitrator's ruling is final, and the courts hardly ever review it.
·
There are a number of alternatives to the legal system for resolving disputes.
The following are these modes:
1.
Negotiation; a procedure
when the parties
and their legal
counsel attempt to settle
the disagreement by coming to a consensus through written correspondence or a
conference with all parties involved.
2. Mediation; entails the involvement of a mediator,
or third party,
in a disagreement to help the parties negotiate a mutually agreeable
resolution of the issues at hand.
3. Conciliation; the
act of resolving a dispute
by talk between
the parties involved, frequently.
4.
Arbitration ; An
impartial party known as a "arbitrator" considers
the arguments and supporting
documentation from both sides before rendering a decision.
5.
Mini trial ; a procedure in which each party
designates a neutral third party and an official with settlement authority. -hearing the evidence
and negotiating a resolution.
·
Nonetheless,
given the volume of cases pending in Indian courts, arbitration is valued as a
significant ADR option and is promoted there.
·
In
terms of promoting Alternative Dispute Resolution Systems, the government has
taken the lead. Section 89 of the Civil Procedure Code, 1908, provides the
enabling legal framework for the resolution of disputes through Alternative
Dispute Resolution (ADR). Arbitration, conciliation, mediation, and judicial
settlement—including settlements made through
Lok Adalat—are recognised under Section 89. When it seems
that there are components of a solution
that would be acceptable to the parties,
it allows the court to submit
a dispute for settlement by either of these methods.
·
The United Nations
Commission on Trade and Law's (UNCITRAL) Model Law of International
Commercial Arbitration and Conciliation rules have received the proper
recognition from the UN. The model legislation and regulations have been
significant in resolving business conflicts and have served as a source of
guidelines for several other nations. These can be modified in accordance with
local laws because, prior to globalisation, there was no single law pertaining
to commerce, and thus increased the number of trade-related conflicts.
·
India
passed the Arbitration and Conciliation Act, 1996, which was further updated in
2015 and addresses both local and international business arbitration in India,
based on the UNCITRAL model legislation. The modified Act places particular
emphasis on reducing the function of the judicial court in arbitration
procedures and on treating all arbitration awards and orders as decrees, in
accordance with the civil procedure rules. The
Act is divided into two sections: Part I covers
important laws pertaining to domestic and
international commercial arbitration procedures that must take place in India,
regardless of the nationality of the parties involved, and Part II discusses
the enforcement of foreign arbitration awards.
Historical Background of Arbitration:
In India:
·
In accordance with Hindu law, the "Brihadaranyaka
Upanishad" is where arbitration in India originated. It allowed for many kinds
of arbitral bodies, with the three main bodies being:
1.
The Local Courts.
2.
The people engaged in the same business or profession.
3.
Panchayats.
·
In the past, disagreements were arbitrated by members
of panchayats, also known as panchas, using a set system
·
Subsequently, however, the first legislative council
for British India was established, and the "Indian Arbitration Act,
1899," India's first piece of legislation pertaining to arbitration, was
only applicable to the presidential towns of Calcutta, Bombay, and Madras. The
British Arbitration Act of 1889 served as the main inspiration for this Act.
·
Thereafter came the Arbitration Act, 1940 which
applied to the whole of India including Pakistan and Baluchistan. However, post-
independence the same was modified via ordinance. Nevertheless, an ordinance
changed the same thing after independence.
·
The 1940 Act had several flaws, including the absence
of a clause that would have prohibited an arbitrator from leaving their
position at any point during an arbitration process and inconsistent rules
amongst High Courts regarding the filing of awards. As a result, the 1940 Act
was superseded by the Arbitration and Conciliation Act, 1996, which affirmed
these issues.
·
During British administration, India passed the first and
comparatively modern Arbitration statute in 1772 with the Bengal Regulation.
After that, arbitration was accepted as a means of resolving disputes in India for
the first time with the passage of the India Arbitration Act of 1899, which
only applied to the three presidential towns of Madras, Bombay, and Calcutta.
·
According to Bengal Regulation 1781, the judge may suggest
to the parties that they submit to arbitration by a single arbitrator who will
be chosen by mutual consent between the parties. But there was no pressure.
·
Certain procedural adjustments were subsequently
adopted by the Bengal Regulations of 1787, 1793, and 1795, which gave the court
the authority to send a lawsuit to arbitration with the parties' cooperation.
The Bombay Regulations Act of 1799 and the Madras Regulation Act of 1802 served
as its extension.
·
The Arbitration Act of 1940, which was implemented throughout
all of India, introduced legal uniformity to the country, but the Awards were
not granted finality and were instead subject to Civil Court review before
becoming final through Rule of Court.
·
The 1940 Act was the subject of numerous debates, but
it was also heavily criticised. It was noted in certain situations that the
Arbitration Act, 1940 makes a distinction between an application seeking to have
an award set aside and one seeking a declaration that the award is void.
Advantages of Arbitration in India;
·
Expertise in Technical Matters: Since arbitrators are typically
chosen based on their experience and qualifications in a particular subject,
they are well-suited to handle technical, scientific disputes. As a result,
conflicts are settled more quickly and effectively.
·
Compared to the conventional method of resolving disputes
in court, the arbitral process is less expensive and time consuming.
·
The parties can choose the language, location, and
time of the proceedings, which is convenient for them.
·
The parties' privacy and confidentiality are preserved
because the disagreement isn't needlessly made public.
·
Because one is not required to adhere to the tight and
rigid norms and regulations that apply to judicial proceedings, arbitral
proceedings are more flexible than those in courts. This is because the parties
establish the guidelines and procedures for the proceedings.
·
Arbitrator
choice: The parties may agree to appoint an arbiter who possesses
relevant experience in the relevant field, or they may choose to have an
arbitrator appointed by the institution.
·
Time frame for issuing an award: In the event of domestic
arbitration, the tribunal will issue an award no later than twelve months after
the last day of pleadings. Conversely, in internal commercial conflicts, there
is no set time range and the time period is fairly loose. Thus, the prize is
given without needless delay.
·
Since the arbitrator is typically chosen jointly by
the disputing parties, both parties can be sure that the person will be neutral
and unbiased.
·
Appeals for binding arbitration are not always
available. This provides the arbitration with a degree of finality that is not
usually possible with trial decisions that may be susceptible to appeals,
retrials, and more appeals.
Principle characteristic of Arbitration;
·
Arbitration is a consensual process: Only when both parties to a dispute
have consented can an arbitral procedure
begin. In most cases,
parties include an arbitration
clause in their contract to handle any future problems resulting from failure
to fulfil contractual duties. If both parties
to the disagreement consent, a dispute that has already begun may also be sent to
arbitration (submission agreement).
·
Parties select the arbitrators: In accordance with the Indian
Arbitration Act, parties may designate one arbitrator alone or jointly to serve
as an umpire. Nonetheless, there should always be an odd number of
arbitrators selected by the parties.
·
Arbitration is impartial: The parties can decide on other
crucial aspects of the case, such as the applicable law, the language to be
used, and the arbitration location, in addition to appointing impartial
individuals as arbitrators. These measures guarantee that one side does not
have a home court advantage.
·
The arbitral
tribunal's decision is final and simple to implement: The arbitral tribunal's ruling or award is final and enforceable against
all parties and individuals only once the period of time specified by Sections
33 and 34 of the Act has passed.
·
When the award
becomes final it shall be enforced under
the Code of Civil Procedure, 1908, in the same manner, one
enforces a decree passed by the court.
·
In
most cases, the arbitral award cannot be appealed. Only a few reasons, such as
an illegal arbitration agreement, the inability of the parties, the
independence and impartiality of the arbitrator, an unfair procedure, etc., allow an arbitral
result to be set
aside.
Types of Arbitration:
The types of arbitration agreements can be divided into groups according
to the geographical jurisdiction—that is, the location where the disputes are
being resolved. The laws that have been decided to apply in connection to the parties'
legal relationships may also be a factor.
This is the basis for classifying the various forms of arbitration in
India:
·
Domestic Arbitration: Domestic
arbitration refers to the arbitration process used to resolve disputes
between two parties
that share a legal relationship and who both reside
or are located in India.
In these situations, there is minimal
ambiguity over the laws that apply to resolve the disputes. The representation
of parties before the arbitration panel is assisted by
Indian arbitration lawyers.
·
International Arbitration: International arbitration is used when one of the parties
is a national of a nation
other than India and the issue
is being settled through arbitration in accordance with Indian
law. In certain situations, the presence of an international component is
evident. Usually, disputes under international arbitration are settled outside
of India.
·
International commercial Arbitration: When a
commercial dispute involves an international component and one of the parties
(an individual or a body corporate) is Indian,
the laws specified
in the contract are used to resolve
the conflict. In cases where there are no explicit
provisions pertaining to the resolution of disputes or an agreement to adhere to Indian laws, the
Indian arbitration and mediation procedures would be applied. International
business arbitration is the name given to this type of arbitration procedure.
·
Institutional Arbitration: Arbitration can take several
forms. One type is institutional arbitration, wherein the
parties to a contract choose a specific organisation to handle
arbitration-based dispute settlement. When the institution handles these
duties, parties might not have to deal with the trouble of choosing the
arbitrator. Effective dispute settlement is aided by institutional arbitration.
·
Ad-hoc Arbitration: Ad-hoc arbitration is used when there is no legal requirement and the parties mutually
choose to resolve
disputes through arbitration. In India, it is among the most popular forms of
arbitration. In these situations, the disputing parties may agree upon a
procedure to be followed during arbitration.
·
Fast track Arbitration: The
Arbitration and Conciliation Act of 1996, Section 29B, allows for a streamlined arbitration process. This is the most effective kind of arbitration
for resolving disputes out of all the others. Documents typically serve as a
summary of information to expedite processes.
·
Contractual Arbitration: An
formal document with various provisions that have been agreed upon by the parties is called
a contract. Parties to a contract may add an arbitration provision that
specifies that any disagreement must be submitted to arbitration before going
to court. In these situations, the arbitration clause's provisions determine
how the parties proceed with using an arbitrator to resolve their disagreement.
·
Statutory Arbitration: Certain statutes or laws limit
dispute resolution to arbitration alone. In the context of legal relationships
governed by such laws, arbitration is the preferred method of conflict resolution.
·
Foreign Arbitration: Foreign arbitration is the process of resolving legal
issues between parties who, although one of them may be Indian, have mutually
chosen to adhere to the laws of a foreign jurisdiction through arbitration.
Foreign arbitration regulations are adhered to in certain situations,
irrespective of whether the arbitration is held in India or another nation.
Domestic Arbitration Agreement arising out of Commercial Dispute between two
parties:
IN
THE COURT OF THE SPECIAL
JUDGE FOR TRIAL AND DISPOSAL
OF COMMERCIAL DISPUTES,
IBRAHIMPATNAM, VIJAYAWADA.
Present: Sri D.Yedukondalu,
Special Judge for Trial
and Disposal of Commercial Disputes, Ibrahimpatnam, Vijayawada.
Between:
1.
The State Government of A.P., represented by the District
Collector, W.G., Eluru.
2.
The District Collector/Chairman, District Tourism Counsel,
W.G District, Eluru.
.... Petitioners/Defendants
AND
1.
Dawn Projects Pvt., Ltd., represented by its Managing Director.
2.
A. Ramanand.
... Respondents/Plaintiffs.
On September 3, 2021, Blue Jeans V.C. brought this interlocutory
application before me for a final hearing. Sri T.N.V. Ramana Murthy,
an advocate for the respondents/plaintiffs, and an
additional government Pleader represented the petitioners/defendants were
present. In light of the evidence presented, this Court rendered the following
decisions:
//ORDER//
1)
Under Section 8 of the Arbitration and Conciliation
Act, 1996 (Act No. 26 of 1996), The petitioners, hereafter referred to as "defendants," filed an Interlocutory Application against the respondents, herein referred to as
"plaintiffs" to refer the, subject topic of the arbitration complaint
under the Development and Management Agreement's and the Lease Agreement's
Arbitration Clause.
2)
The second
defendant, the West Godavari District,
Eluru, District Collector and Chairman of the District Tourism
Council, submitted an affidavit bolstering the defendants' claim that the the
plaintiffs brought the lawsuit against the defendants for declaration that the orders dated
September 20, 2017, in Rc. No. 21/DTC/2017, passed by him in the capacity of
the second defendant, cancelling the multiplex
and hotel project awarded to the plaintiffs,
were arbitrary, invalid, and therefore ineffective, and for a consequential
mandatory injunction directing the defendants
to restore the contract of the construction, development, and lease of the multiplex
and hotel project in Eluru Entertainment Zone, referred to as A-Schedule
property, to the first plaintiff by taking steps
for land use conversion, or alternatively for damages of.3,15,27,877/- to the ? plaintiffs for
breach of contract with interest, as well as a permanent injunction prohibiting the defendants from putting the project up for auction
again, establishing any third-
party interests, or interfering with the plaintiffs' possession of the plaint schedule
site—as there was an
agreed-upon 33-year lease—and for the suit's costs. The reliefs claimed in the the defendants had not broken any
contracts, so the plaint was unjustified. Furthermore, the directives dated
September 20, 2017, in Rc. No. 21/DTC/2017, which he issued to revoke the hotel
and multiplex projects granted to the plaintiffs, were not random, unsound, and
not ineffectual. The aforementioned cancellation orders were legitimate and
authentic; they were issued by sending the plaintiffs
multiple letters, providing them
with a fair chance to respond, and adhering to the required
legal procedures.
2.2) The District Collector went on to say that the
plaintiffs submitted a number of documents,
including the Development and Management Agreement and the Lease Agreement
for the hotel, multiplex entertainment, and shopping. There's a express
clause under the heading "Dispute Resolution" stating that, should a dispute arise, both
parties will attempt to resolve it
through mutual discussions in the manner specified, and that, should no
resolution be reached within 60 days of the matter being referred to the High
Level Committee, the matter will be referred to arbitration arising out of
contract. As a result, the plaintiffs filed the current lawsuit
in opposition to the provisions of the contract
after failing to disclose the Arbitration Clause in the
agreement mentioned above. Thus, it The Arbitration Clause cannot be disregarded by the plaintiffs in their lawsuit filing. As a result, in accordance with the
agreement's specific clause, the defendants were forced to submit an application to bring the matter in dispute to arbitration. He prayed that the application would be granted as a result.
3)
The
first plaintiff filed a counterclaim, which the second plaintiff accepted. In
particular, he refuted
the serious accusations made in the affidavit that the defendants provided. The initial plaintiff claimed that there was no High
Level Committee by the
defendants at any time, and as a result, there
is no need to bring the disagreement to arbitration. The plaintiffs specifically argued that
they were duped into entering the bid by the defendants' false representations,
when in reality there was no such project declaration, which amounted to fraud,
and that the defendants' unilateral cancellation of the projects awarded to
them was an act of fraud. There are complicated matters that need to be decided by a knowledgeable court. and the matter cannot be resolved
by an arbitrator. The complaint was first numbered as a Commercial Dispute
by the Hon'ble Principal District
Court of Eluru, and it was subject
to the Commercial Courts Act,
2015's regulations. The matter is maintainable in this court under Section 2(1)(c)
of the Commercial Courts Act, 2015 because
the plaintiffs are requesting more than Rs. 1 crore in damages, together
with a declaration and injunction, as well as other relief in the form of
compensation totaling Rs. 3,15,27,877. It is not permitted to contest the
reliefs before any arbitrators.
3.2) The defendants made their appearance through
their Counsel and sought time for filing counters in Interlocutory Applications
and the suit was posted for filing of rebuttal and the defendants' written statement. The accused submitted their counterclaims.
the appointment of an advocate-commissioner and a temporary injunction, respectively, in I.A.Nos. 2602/2017 and 2603/2017. Additionally, the
defendants filed written statement/counterclaim in accordance with the terms of
the Commercial Courts Act of 2015 and Order 8 of the Civil Procedure Code of 1908. As a result, the defendants decide
to raise objections. The defendants were
barred from contesting or raising any objections to this Court's jurisdiction
once they submitted their counters and written statements. Therefore, no
arbitrator may be assigned to hear this case. They therefore begged the court
to reject the application.
4)
I heard
the learned Additional Government Pleader for the defendants and the learned Advocate for plaintiffs through
Blue Jeans V.C.
5)
The
question that needs to be answered now is whether the conflicts that are the
subject of the lawsuit can, as requested, be submitted to arbitration in light
of the arbitration clauses in the development and management agreement(s) and
the lease agreement(s).
6)
POINT: The knowledgeable Additional Government Pleader
contended that the defendants may still file an application under Section 8 of
Act No. 26 of 1996 requesting reference to the matter even if they merely file the counters
in Interlocutory Applications. Since the lawsuit was
launched as a commercial lawsuit and the 120-day period set forth in the
Schedule to the Commercial Courts Act, 2015 was about to expire, arbitration
was requested, and a written
statement/counterclaim was filed. He went on to say that the Court should
investigate the existence
of the arbitration agreement rather
than treating the disagreement as a
civil or commercial dispute. He added that the application made in accordance with Section 8 of Act No. 26 of 1996 was submitted far sooner than necessary in order to submit the required
written statement and counterclaim. the filing of the counterclaim or written
declaration was not a barrier to referring the matter to arbitration under Sec.
8 of Act No. 26 of 1996. As a result, he asked the court to grant the application and use the Dispute Resolution Clause to send the disagreements to arbitration.
However, the plaintiffs' learned counsel countered that the application was not
maintainable because it was brought after the written statement/counterclaim was filed. He went on to say that the agreement was not included
with the application and that the defendants could not prosecute
the application since they submitted the disputes to this Court's jurisdiction when the written
statement cum counter-claim was filed.
Additionally, the disagreements The arbitrator is unable to make a decision
about the declaration, the mandatory
injunction, or, alternatively, the damages and permanent injunction. He asked the Court to reject
the application as a result.
6.2) Admittedly, the plaintiffs and
defendants entered into Lease Agreements as well as the Development and
Management Agreements. The plaintiffs filed the original Lease Agreements as
Document Nos.18 to 20 and copies of the Development and Managment Agreements as
Document No.21 to 23 annexed to the plaint. Of course, the complete copy of
Document No.23 is not filed and the same is not a hurdle for deciding this matter as the Dispute Resolution Clauses are very much available
in Document Nos.21
& 22. From the pleadings, it appears that the defendants cancelled the project by issuing
order dated 20.09.2017 in Rc.No.21/DTC/2017 and challenging the order of the
cancellation, the plaintiffs filed the suit for declaration that the orders dated
20.09.2017 in Rc.No.21/DTC/2017 were arbitrary, invalid and ineffective and for consequential mandatory
injunction, directing the defendants to restore
the contract, or in the alternative to award the damages and compensation of Rs.3,15,27,877/-,
and for permanent injunction restraining the defendants from re-auctioning the
project, from creating any third party interest
and not to disturb the possession of the plaintiffs over the plaint schedule property. The suit
was registered as COS.No.1/2017 on the file of Hon’ble
Principal District Court, Eluru on 06.11.2017, and it was posted to 19.04.2018
for appearance of the defendants. The plaintiffs also filed I.A.No.2602/2017
and I.A.No.2603/2017 on the file of Hon’ble Principal District Court, Eluru
seeking appointment of Advocate-Commissioner and granting temporary injunction.
The defendants received notice in I.A.No.2602/2017 on 15.11.2017 and the
notice in I.A.No.2603/2017 on 16.11.2017, and also filed counters in both the
I.As on 04.12.2017. The defendants also received the suit summons
on 18.11.2017 and filed
written statement cum counter-claim on 02.02.2018, much earlier to the date of
first appearance. The Hon’ble Principal District Judge, Eluru advanced the suit
to 05.02.2018 stating that the suit was advanced in view of the provisions under the Commercial Courts Act, 2015 and taking into cognizance of the written
statement cum counter-claim which was already filed, the suit was further
proceeded. But, as it could be seen from this Interlocutory Application, the
defendants filed this application on 30.01.2018, much earlier to the date of
filing of the written statement cum counter-claim. This application was
numbered vide I.A.No.261/2018 on the file of Hon’ble Principal District Court,
Eluru on 31.01.2018 and posted for counters. It may not be an out of place to mention
that the notice of this application was given to the Advocate for
plaintiffs on 27.11.2017 itself and the Advocate for plaintiffs made an
endorsement that he received notice and prayed time for counter. Later, the
counter was filed on 06.04.2018. After establishment of this Court, the suit as well as the Interlocutory
Applications were transferred to this Court.
6.3) The
plaintiffs' learned counsel
proceeded with the arguments, stating
that the court
must consider not only the written
statement but also any past statements, applications, and affidavits
produced by the defendants. AParaphrasing Tool - QuillBot
AI statement in writing, which
will be interpreted as the submission of a statement regarding the content
of the disagreement when
handling an application in accordance with Section 8 of the Act. No. 26 from
1996. He cited the Hon'ble Supreme Court of India's ruling in Booz-Allen &
Hamilton Inc. vs. Sbi Home Finance Ltd. & Ors.1 in support of this claim,
whereby at Paragraph No. 17 was decided as follows:
The act of submitting a written statement in a lawsuit is not the only
thing that will be interpreted as "submission of a statement on the
substance of the dispute." A defendant may also file any statement,
application, or affidavit before the written statement is filed. By submitting such a statement,
application, or affidavit, the defendant indicates his intent to submit to the
court's jurisdiction and to forgo his right to request a reference to
arbitration. However, since the defendant files a reply to an application for a
temporary injunction, attachment before judgement, or receiver appointment in order to prevent an interim order from
being made against him, it cannot be interpreted as a statement regarding the
content of the dispute. Regarding Verma
Transport Company v. Rashtriya Ispat Nigam Ltd. In 2006 (7) SCC 275, this Court determined that the
term "first statement on the substance of the dispute" as used in Section 8(1) of the Act is not the same as "written statement," and instead refers to a
submission made by the party applying for judicial authority under Section 8 of
the Act. The question for the court to determine is whether the party requesting a reference to arbitration has forfeited his or her right to use the
arbitration clause. The Court then moved on to discuss whether filing a
counter-application for a temporary injunction would constitute bringing
oneself under the court's jurisdiction.
This Court noted:
"The limitation in Sub-section (1) of Section 8 was not attracted by
rejecting the request for an interim injunction. When a response is made public
in order to refute an injunction request, it does not always follow
that the core issues of the dispute
have previously made public in the primary
action. The primary
proceeding does not include any supplemental
or incidental proceedings. The Code of Civil Procedure itself addresses each of
them separately. The Code of Civil Procedure's Section 94 addresses additional
proceedings. The proceedings that result from the main proceeding are known as
incidental proceedings. This Court's ruling in Food Corporation of India v.
Yadav Engineer & Contractor - 1982 (2) SCC 499 has clarified the differences between
the primary proceeding and the supplemental process. must be kept in mind.. The factual circumstances that
arise in each case must be taken into consideration when determining whether
a defendant has waived their right to the lis. The court had already issued an ad interim ex
pare injunction in the current case. The Court's notice required a response
from the appellants.
This ruling by the Hon'ble
Apex Court of India states that the act of merely filing
a response in an application for a temporary
injunction or attachment prior to a judgement or receiver appointment cannot be
seen as providing a declaration on the main points of contention as it was resolved
to prevent the defendants from being subject
to an interim order. Even though the defendants in this case filed
counters in I.A.Nos. 2602/2017 and 2603/2017 on the Hon'ble Principal District
Court, Eluru's file on 04.12.2017—many months before the date on which this
motion was filed—the claimed Counters cannot be interpreted as a submission of
arguments regarding the content of the disagreement. Put differently, the
aforementioned counters may be interpreted as declarations intended to evade
interim orders, which might be used to designate
the Advocate-Commissioner or issue an order of interim order of prohibition. Therefore, in accordance with Section 8(1) of Act No. 26 of 1996, the simple
filing of counters in interlocutory applications
for the appointment of an advocate-commissioner or the granting
of a temporary injunction cannot be interpreted as the first statement on the
subject of the dispute.
6.4) Regarding the written
statement/counterclaim, as I previously
stated, the defendants filed it well in advance
of the date of the initial appearance. The plaintiffs contended
that their disagreement with
the defendants is a Commercial
Dispute as defined by the Commercial Courts Act, 2015, Sec. 2(1)(c). The
conflict was also recognised as a commercial dispute by the Hon'ble Principal
District Court of Eluru, which gave it the COS.No.1/2017 designation. In such a
case, the proceedings before the Commercial Courts are governed by the Civil
Procedure Code as amended by the Commercial Courts Act, 2015,
as specified in the Schedule to the Commercial Courts Act,
2015, and the defendants are required to file their written statement within
120 days of the date the summons was served. The defendants shall forfeit the
right to file a written statement and the court shall not permit the written
statement to be taken on record upon the expiration of 120 days from the date
of service of the summons, according to Order 5 Rule 1 (1) and the proviso to Order 8 Rule 1 of the Civil Procedure
Code, 1908, as amended by the Commercial Courts Act, 2015. Thus, as the
wise Additional Government Pleader contended, it turned into required of the defendants to provide the written
statement and counterclaim within the allotted 120 days, if not earlier
than the first appearance
date fixed in the summons
for suit. However,
as I have stated,
this Act No. 26 of 1996 Section 8 application was filed
considerably prior to the written document's filing date assertion combined with a refutation. Therefore, after filing
this application under Section 8 of Act No. 26 of 1996, the simple act of
filing a written statement or counterclaim shall not prohibit the accused from
pursuing this application.
6.5) Regarding the three lease
agreements that are filed as Documents Nos. 18, 19, and 20, Clause No. 22 addresses dispute
resolution and states that, in the case of a
dispute, the parties shall do their best endeavours to intended to be
resolved by cooperative dialogue in the prescribed way. Arbitration will be
consulted if, after the Committee's referral, a resolution cannot be reached in
60 days. It further states that the Committee will submit the matter to
arbitration in accordance with the Arbitration and Conciliation Act, 1996, if
it cannot resolve the disagreement within 30 days of the problem being referred
to it. In accordance with Agreement Clause No. 24, the failure of Regarding the three lease
agreements that are filed as Documents Nos. 18, 19, and 20, Clause No. 22 addresses dispute resolution
and states that, in the case of a dispute, the parties shall do their best
endeavours to intended to be resolved by cooperative dialogue in the prescribed way. Arbitration will be consulted
if, after the Committee's
referral, a resolution cannot be reached in 60 days. It further states that the
Committee will submit the matter to arbitration in accordance with the
Arbitration and Conciliation Act, 1996, if it cannot resolve the disagreement
within 30 days of the problem being referred to it. In accordance with
Agreement Clause No. 24, the failure of The matter will be sent to arbitration, and the waiver clause states
that no option, right, or remedy may be
renounced other than those that are expressly stated in the parties' signed
contract or as permitted by law. Regarding the Development and Management
Agreements, a comparable arbitration clause has been added. Therefore, in the
event of a disagreement, the parties shall attempt to settle it by bringing it
before the Committee. Should the Committee be unable to resolve it, the matter
will then be referred to arbitration in accordance with Act No. 26 of 1996's
provisions. Therefore, the plaintiffs cannot claim that the defendants did not form a committee; instead, it is the plaintiffs'
responsibility to form a committee and to be able to refer to the Arbitration
later on.
2.
Report on visit to State Legal
Services Authority / District Legal Services Authority /
Taluk Legal Services Committee / Local Legal Aid Centre :
Legal Services
Authority in States ;
·
A State Legal Services Authority is formed in each state
to aid and promote the policies drafted by the central authority .
·
The State Legal Services Authority works to promote and
provide free legal aid to the backward individuals of the state and organise
Lok Adalats in respective states
·
The Chief Justice of the respective High Courts acts
as the State Legal Services Authority chairman. A senior or retired judge of the
respective state High Court is appointed as the Executive Chairman of the State
Authority.
·
Along with the State Legal Services Authority, every
district comprises District Legal Services Authorities at the district level.
Report on visiting Maharashtra Legal Services Authority
Address-
Public Works Department Office Building, 105, High court,
Fort, Mumbai, Maharashtra
400032
Date of Visit:
19/02/2024
Introduction:
The Maharashtra State Legal Services Authority (MSLSA) is housed in the
Public Works Department Office Building, 105, High court, Fort, Mumbai,
Maharashtra 400032. I had the chance to visit
the MSLSA on February 19, 2024. The visit's goal was to learn more about how MSLSA operates and how it helps the
poor and marginalised groups in society by offering legal assistance and other
services.
Purpose of Visit or
Interaction:
My visit to the Maharashtra State Legal Services
Authority (MSLSA) was intended to provide
me with an understanding of how it functions and how it assists the
disadvantaged and marginalised groups in society by offering legal aid and services. I wanted to see how MSLSA
operated, learn about its services, and talk about how laws and real-world
applications are related during the interaction session.
Overview of Maharashtra State Legal Services
Authority (MSLSA):
Established under the Legal Services
Authorities Act, MSLSA is an independent organisation whose mission is to guarantee that all
individuals, particularly the weaker and less fortunate, have equitable access
to the legal system. The National Legal Services Authority (NALSA) provides direction to the authority, which
is in charge of carrying out legal
assistance projects and programmes
throughout the state of Maharashtra.
Observations / Information Collected:
Upon arrival at the MSLSA office, I was impressed by the modern
and well-equipped facilities available to visitors. The office premises were spacious and
organized, with separate sections for client consultations, legal aid clinics,
administrative offices, and training rooms.
The facility appeared to be
conducive to promoting a welcoming and accessible environment for individuals
seeking legal assistance
Service offered:
During the visit,
I had the opportunity to learn about
the various services
offered by MSLSA to cater to the diverse legal needs
of the community. These services include:
·
Legal Aid Clinics: MSLSA operates
legal aid clinics in different districts and talukas across Maharashtra,
providing free legal assistance and advice to individuals facing socio-economic
challenges or unable to afford legal representation.
·
Mediation and Conciliation: MSLSA facilitates mediation and
conciliation proceedings to resolve disputes amicably and avoid prolonged
litigation. Trained mediators and conciliators assist parties in finding
mutually acceptable solutions to their conflicts.
·
Awareness and Education Programs: MSLSA conducts awareness campaigns
and legal literacy programs to educate the public about their rights and
entitlements under the law. These initiatives aim to empower
individuals with knowledge
and information to access
legal remedies effectively.
·
Legal Aid for Special
Groups: MSLSA prioritizes providing legal aid and
assistance to marginalized groups such as women, children, senior citizens,
persons with disabilities, and prisoners. Specialized programs and initiatives
are tailored to address the unique legal challenges faced by these groups.
Relevant provisions of law:
The MSLSA was established and is
governed by the Legal Services Authorities Act, [Insert Year]. The Act
guarantees equal access to justice for all members of society, regardless of
financial situation, by requiring the provision of free legal aid and services
to the underprivileged. MSLSA's operations are also governed by a number of
other laws and regulations, such as guidelines and norms promulgated by the
National Legal Services Authority (NALSA).
Linkage between law and practice:
The
practical use of legal aid services by MSLSA and the legal provisions inherent
in the Legal Services Authorities Act are clearly linked. Among other
things, the Act establishes the guidelines for the creation of legal aid
clinics, the selection of legal assistance practitioners, and the management of mediation procedures. MSLSA's actions show a dedication to carrying out its
statutory duty since they are in line with the goals and values stated in the
Act.
The dialogue session gave
participants insightful knowledge on how MSLSA's practical application of the
law is linked to its provisions. It was clear that the organisation follows the
legal guidelines set forth by the Legal Services Authorities Act, making sure
that all legal obligations are met as well as the concepts of justice and equity. The successful application of legal provisions highlights the significance of robust
institutional frameworks and committed initiatives to advance marginalised
communities' access to justice.
CONCLUSION:
To sum up, I learned a lot and gained
insight from my visit to the Maharashtra State Legal Services Authority. The
dialogue facilitated a more profound comprehension of MSLSA's function in
offering legal assistance and services to the community and emphasised the
significance of harmonising legal stipulations with pragmatic execution. In order
to advance the rights of the disadvantaged and marginalised groups in society,
MSLSA upholds the values
of equality, justice, and fairness.
Acknowledgement:
I extend my gratitude to the
officials and staff of the Maharashtra State Legal Services Authority for their hospitality, cooperation, and valuable
insights shared during
the interaction session.
Article Information
REPORT ON STATE LEGAL SERVICE AUTHORITY AND ARBITRATION DISPUTES BETWEEN TWO PARTIE
Authors: ASHISH SHUKLA
- Journal IJLRA
- ISSN 2582-6433
- Published 2024/03/30
- Issue 7
About Journal
International Journal for Legal Research and Analysis
- Abbreviation IJLRA
- ISSN 2582-6433
- Access Open Access
- License CC 4.0
All research articles published in International Journal for Legal Research and Analysis are open access and available to read, download and share, subject to proper citation of the original work.
Disclaimer: The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of International Journal for Legal Research and Analysis.