Legal Question in Mediation in India

here are the facts:

a contract signed for loan in sep 2009(no loan given) and chq given against it for 01 may 2010. the agreement has a arbitration clause giving the right to appoint the sole arbitrator to first party.

chq presented on 29.9.10, bounced, NO action taken.

again presented on 3.12.10 (it went stale on 30.10.13 and is no longer valid)again bounced. on 3.1.11 notice under sec 138 issued.

first party jailed in fraud case and is in jail for 11 months till dec 2011.released on bail and files for condonation of delay in filing criminal complaint in jan 2012....being dismissed on grounds that the notice under 138 not valid on bouncing of dec-2011(chq valid till october 2011 only).(judge has set it for order in jan 2014)

this case for condonation drags till date, however in last hearing the other party serves notice in court that they have started arbitration proceedings. No notice given to us for the last 3 years( arbitartor say he was appointed in jan 2011).

no where during the course of fight in case of 138 the party declare that they have appointed arbitrator neither to court nor to us.

my question is:

1) what is the cause action for arbitration.

2) can an arbitrator be appointed without informing the other party even if one holds the power to appoint sole arbitrator

3) can the sole arbitrator be dormant for 11 months and not inform the other party.

4) can a firts notice for arbitration be served in court after almost 2.5 years of so called appointment of arbitrator

pls advise the course of action and legal remedies available.

1 Answer from Attorneys

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