Circulars

Circulars

Cir No. 52 / A-3 / 2021

TO ALL LIFE/PRIMARY/ AGENT & DISTRIBUTOR MEMBERS OF THE ASSOCIATION:

Dear Sir, 

In these difficult times, recovery of dues has become a huge headache to all. Litigations in Indian Courts for minor Commercial disputes are time consuming and costly and many refrain from filing Court Cases. Arbitration is a process of Alternate Dispute Resolution (ADR) between the parties through an Arbitral Tribunal, and is less expensive, quicker, secure and offers more privacy to the parties.

To provide an Institution approach to Alternate Dispute Resolution (ADR) Mechanism in the Apparel and allied Industry CMAI has launched its Arbitration Cell on 23^rd November 2021 at a specially organised Arbitration Seminar.

Members desirous of making reference to arbitration by CMAI in future must mandatorily print on all Invoices/Contracts/Purchase Orders the following Arbitration Clause:

CMAI  ARBITRATION CLAUSE–

“All disputes, or differences arising between the Parties out of or relating to this contractshall be resolved under “Arbitration Rules of CMAI” and the Award made in pursuance thereof shall be binding on the Parties.”

If the Invoice/ Contracts/Purchase Orders contains the above Clause then, if the goods sent vide this Invoice are accepted by the Buyer, then it is deemed that the Terms and Conditions of the Sales are also accepted by him, and hence the dispute can be referred to CMAI to be resolved under these “Arbitration Rules of CMAI”.

If the Clause is not printed on the Invoices, then the dispute arising can only be referred to CMAI for resolution, only if, both the parties agree in writing to resolve their dispute under the “Arbitration Rules of CMAI”. No Arbitration can take place If any one party refuses to agree to resolve the dispute through these Rules.

Further please find attached CMAI Advisory (in English and Hindi) to our Members to minimise Risks of Defaults.

This is for your Information and kind action.

Thanking you,

Yours truly,

P Chandrasekharan
Secretary