Allen Career Institute Pvt. Ltd. v. Pawan Bhatt S/O Prakash Bhatt
2025-02-07
SUDESH BANSAL
body2025
DigiLaw.ai
Order : 1. Applicant-Allen Career Institute Private Limited has filed these arbitration applications under Section 11(6) of the Arbitration and Conciliation Act, 1996 for appointment of a sole Arbitrator to resolve the dispute arisen between the parties. 2. In all the above arbitration applications, the dispute between the parties is identical in nature. Applicant in all the arbitration applications is a common party and non-applicants are different persons, who joined as Faculty Members in the applicant’s Institute for different discipline. The nature of dispute, which has been raised by the applicant, is in respect of tendering of resignations by non-applicants in breach of Contract Service Agreement, executed by the respondents separately on an even date, dated 31.01.2018, hence the applicant claims to be entitled for double of the last drawn salary and damages from the non- applicants in terms of breach clause 3.5, enumerated in the Contract Service Agreement dated 31.01.2018. 3. Notices were issued to the non-applicants and as per the office report, service upon non-applicants is complete, yet no one on behalf of any of the non-applicants has put in appearance to oppose the appointment of Arbitrator, in respect of the dispute so raised by the applicant-Institute. 4. Having considered the identical nature of dispute and in the above referred facts and circumstances, with the consent of learned counsel for the applicant, all the arbitration applications have been heard together and would stand decide by this common order. 5. The relevant facts of case, briefly stated, taken from S.B.Civil Arbitration Application No.83/2023, are that respondent entered into a Contract Service Agreement with the applicant-Institute on 31.01.2018, in order to provide coaching to the aspirants enrolled in the course with the applicant-Institute. A copy of the Contract Service Agreement, entered into between the parties, has been placed on record as Annexure-2.
A copy of the Contract Service Agreement, entered into between the parties, has been placed on record as Annexure-2. As per the clause 3.4 of the agreement, the tenure of the contractual relationship was initially agreed for a period of 3 years and in clause 3.4.2, it was agreed that after completion of tenure of 3 years, the contractual relationship shall continue automatically for a further period of 3 consecutive academic sessions and if the second party wishes to leave and not to re-enter and need not continue the automatic renewal of contract, then it is compulsory for him, under any circumstances, to submit in writing a duly signed resignation letter on or before 30 th day of month of November which is falling immediate before 31 st day of month of March of the last academic session. Thus, a clear four months' prior notice before expiry of contractual period, is pre-condition for respondent if he wishes to quit his service from the applicant-institute. 6. According to applicant-Institute, respondent has quit/ resigned from the applicant-Institute in the mid-session of 2023 without serving a four months advance notice, in terms of clause 3.4.1 and 3.4.2, rather has joined another institution due to which the applicant has suffered losses and as such, the applicant is entitled to claim the damages from the non-applicants in terms of the breach clause, envisaged in the Contract Service Agreement. 7. It has been pleaded and argued on behalf of the applicant- Institute that a legal notice dated 26.05.2023 (Ann.5) was served upon the respondent through registered post as also through e- mail, which has not been replied by the respondent despite receiving the same. It has been pointed out that in the Contract Service Agreement itself, it has been agreed between the parties that all disputes and differences of any nature shall be referred to the sole Arbitrator, appointed by the applicant-Allen Career Institute, and the arbitration proceedings shall be conducted in accordance with the provisions of Arbitration and Conciliation Act, 1996. For ready reference, clause 3.18, incorporated in the Service Agreement is being reproduced hereunder:- " 3.18. Disputes & Jurisdiction: 3.18.1 All disputes and differences of any nature with regard tothe conditions of the first party M/s ALLEN CAREER INSTITUTE and the interpretation and adjudication of clauses and claims respectively shall be referred to the sole arbitrator appointed by M/s ALLEN CAREER INSTITUTE.
Disputes & Jurisdiction: 3.18.1 All disputes and differences of any nature with regard tothe conditions of the first party M/s ALLEN CAREER INSTITUTE and the interpretation and adjudication of clauses and claims respectively shall be referred to the sole arbitrator appointed by M/s ALLEN CAREER INSTITUTE. The arbitration proceedings shall be conducted in accordance with the provisions of the Arbitration and Conciliation Act, 1996 and statutory modification thereof and Rules made thereunder. The award of the arbitrator shall be final and binding on both the parties. The award of the arbitrator shall be final and binding on every matter arising hereunder. It is further agreed that in spite of the fact that the arbitrator may be known to any of the first party's partners, directors or shareholders and that he may have been dealing with the first party's companies or had occasioned to deal with any matter of this agreement shall not disqualify him. Even if the arbitrator may have expressed opinion in similar matter earlier shall also be Jaipur. Rajasthan only. 3.18.2. The exclusive jurisdiction in the matter shall vest in Jaipur (Rajasthan) court only." 8. In above factual matrix of case, the prayer of counsel for the applicant is to refer the dispute for arbitration by appointing a sole Arbitrator. 9. Counsel for the applicant has referred and relied upon the order dated 10.12.2024 passed by this Court in S.B. Arbitration Application No. 32/2024 titled Allen Career Institute Private Limited Vs. Kapil Dev and other connected arbitration applications and contends that the dispute raised in the present arbitration applications is similar to the dispute raised in the arbitration application No.32/2024 and other connected arbitration applications, wherein this Court has appointed the Arbitrator. 10. In addition to above, it has also been pointed out that at the time of execution of the Service Agreement dated 31.01.2018, the applicant-Institute was a partnership firm in the name of ALLEN CAREER INSTITUTE, Kota, which later on, has been converted into a private limited company viz. Allen Career Institute Pvt. Ltd. but the terms and conditions with the respondent-faculty, as agreed in the Contract Service Agreement, have remained same and after merger of the business of partnership firm into the private limited company, transfer employment agreement with the respondents were also entered into and the respondents continued with the applicant-company as its faculty. 11.
Allen Career Institute Pvt. Ltd. but the terms and conditions with the respondent-faculty, as agreed in the Contract Service Agreement, have remained same and after merger of the business of partnership firm into the private limited company, transfer employment agreement with the respondents were also entered into and the respondents continued with the applicant-company as its faculty. 11. Having considered the contentions made by learned counsel for the applicant and on perusal of the pleadings and the document placed on record, this Court finds that the dispute between the applicant and non-applicants exists as also an arbitration agreement, as incorporated in clause 3.18 of the Contract Service Agreement, exists between the parties to resolve such dispute. 12. This Court further finds that in the identical facts and circumstances, in Arbitration Application No.32/2024 and other connected arbitration applications, decided vide common order dated 10.12.2024, this Court has appointed a sole Arbitrator, relying upon the provision of Section 11 (6A) of the A&C Act, 1996 and the recent judgment of Hon'ble Supreme Court in case of SBI General Insurance Co.Ltd. Vs. Krish Spinning: [Civil Appeal No.7821/2024 arising out of SLP (C) No.3792/2024] delivered on 18th July, 2024. 13. In view of above, these arbitration applications also succeed and this Court appoints Hon’ble Mr. Prashant Kumar Agarwal (Former Judge of High Court), Mob. No.9414439777, Address:- C- 82, Ram Nagar, Shastri Nagar, Jaipur, E-mail:- pka1955@yahoo.co.in, as Arbitrator to adjudicate the dispute between parties in accordance with provisions of the Arbitration and Conciliation Act, 1996. 14. The appointment of the Sole Arbitrator is subject to the declarations being made under Section 12 of the Arbitration & Conciliation Act, 1996 with respect to independence and impartiality, and the ability to devote sufficient time to complete the arbitration within the prescribed period. 15. The arbitration fee of the Sole Arbitrator shall be payable in accordance with the provisions contained in the Manual of Procedure for Alternative Dispute Resolution, 2009 as amended by the Manual of Procedure for Alternative Dispute Resolution (Amendment), 2017 vide notification dated 23.03.2017 read with 4 th Schedule appended to the Act of 1996 or as determined by the Arbitrator with consensus of parties. 16. The Registry is directed to intimate Arbitrator Hon’ble Mr. Prashant Kumar Agarwal (Former Judge of High Court), for his approval and consent to act as Arbitrator. 17.
16. The Registry is directed to intimate Arbitrator Hon’ble Mr. Prashant Kumar Agarwal (Former Judge of High Court), for his approval and consent to act as Arbitrator. 17. All other issues may be raised by the parties before the Arbitrator, which shall be considered in accordance with law. 18. Since as per Section 29A of the Arbitration and Conciliation Act, 1996, the arbitration proceedings are required to be concluded within scheduled time as stipulated therein, it is expected from the parties to appear before the Arbitrator on 21.02.2025 or any other date as informed by the Arbitrator to parties or agreed between parties with the consent of Arbitrator, and further parties shall provide their respective E-mail/ Contact Number/ Mobile Number as also of their authorized representatives/lawyers, appearing on their behalf before the Arbitration Tribunal, in order to facilitate the Arbitrator to send information to the parties, whenever required. The information sent by the Arbitrator, on such address/ E-mail/ cellphone of the parties/ their authorized representatives/lawyers, shall be treated as sufficient unless same is not changed. In case, non-applicants do not put in appearance, the Arbitrator shall be free to issue notice through registered post and E-mail, on the address provided by the applicant, to proceed in accordance with law. 19. These instant arbitration applications stand disposed of accordingly.