From arbitration clause to IT Act, here are the key court orders

An employer cannot dispute his liability to pay wages because of the sickness of the unit or pendency of a BIFR rehabilitation scheme

Arbitration clause goes after compromise

Once two disputing companies settle their differences and sign a compromise agreement, neither can invoke an arbitration clause that existed in an earlier contract, the Supreme Court ruled last week while setting aside the judgment of the Gauhati High Court. In this case, Zenith Drugs & Allied Agencies vs Nicholas Piramal India, the high court had referred the disputes between the two to arbitration. The original agreement with an arbitration clause was between Zenith, a clearing agency, and Rhone Poulene, which later merged with Piramal. Disputes arose between the two and the contract was cancelled.