The Arbitration Council of Tirupur (ACT), constituted with representatives of various textile associations and legal experts, has settled a commercial dispute to the tune of Rs. 71.6 lakh involving a Tirupur-based yarn supplier and foreign textile company.
ACT sources told The Hindu that the Tirupur-based company supplied yarn worth Rs. 71.6 lakh to a textile company based in Bangladesh.
After the receipt of yarn exported from here, the foreign company defaulted the payment citing trivial excuses.
This forced the Tirupur firm to approach the Arbitration Council which settled the disputes amicably.
Sources said that since the commercial adjudication method to resolve the disputes had gained importance, the textiles businessmen were being advised to include arbitration clause in every invoice raised during the transactions within the garment supply chain.
“The arbitration clause — ‘Any dispute arising out of this transaction/contract will be referred to institutional arbitration as per the rules and regulations of ACT and the award passed will be binding on us’, will enable the council to settle the disputes arisen in the process.” ACT sources said.
