SAMIN TEKMINDZ INDIA P. LTD. Vs. GOGOYOKO EHF

JUDGEMENT

(1.) By this application under Sec. 11(5) of the Arbitration and Conciliation Act, 1996 (for short, the 'Act'), the applicant has prayed for appointment of a sole arbitrator for adjudicating the disputes that have arisen between the applicant and the respondent under the Master Services Agreement dated Feb. 14, 2008 and addendum thereto.

(2.) By the Master Services Agreement between the parties, it was agreed that the applicant shall develop a music portal for the respondent and for the said purpose shall provide services in accordance with the terms of that agreement. It appears that sequel to the execution of the Master Services Agreement, Statement of Work No. GY- 1 was executed on March 07, 2008 between the parties that defined the scope of work to be executed by the applicant and the resources to be deployed for the same. The estimated cost for the said work was 190,000 payable in 10 (ten) equal monthly instalments. The duration of the project was approximately 10 months starting from March 07, 2008. The applicant claims to have started working on the assigned project with effect from March 07, 2008 and started raising monthly invoices of 19,000 each commencing from the month of April 2008.

(3.) The applicant has averred that the respondent initially made regular payments for five months commencing from April 2008 to Aug. 2008 against invoices raised by it and thereafter defaulted. On March 25, 2009, the applicant claims to have sent communication to the respondent demanding a sum of 115,357.84 towards outstanding amount and reiterated the said demand thereafter. The applicant also raised three more invoices making total due amount payable by the respondent to the applicant in the sum of 128,138.39 till April 30, 2009. On April 20, 2009, the applicant, through its Advocate, sent notice invoking the arbitration clause and called upon the respondent to resolve the disputes under the Master Services Agreement in accordance with the said provision. It transpires that the respondent, vide its notice dated April 29, 2009, terminated the Master Services Agreement dated Feb. 14, 2008 citing non-compliance and dissatisfactory services of applicant as reason of such termination.