SUMER ARORA Vs. DOMINOS PIZZA INDIA LIMITED

JUDGEMENT

(1.) This is a petition under Section 9 of the Arbitration & Conciliation Act, 1996 read with Order XXXIX Rules 1 and 2 CPC, filed by a Franchisee of the respondent- M/s Domino's Pizza India Ltd., who are the Master Franchisee of the parent company, Domino's Pizza International Incorporate Ltd. based at USA. The petitioner' has contended that the Franchisee Agreement required from him considerable financial input of about Rs.70 lacs apart from the valuable site and the superstructure that the petitioner already owned, in order to set up the Domino's franchise at Gurgaon.

(2.) The petitioner submits that the store was opened on 13.9.98. The principal terms' of the agreement between the petitioner and the respondent in so far as they are relevant are that the franchise was for a period of ten years, renewable for a further period of 10 years on terms agreeable mutually. Upfront franchise fee of Rs.5 lacs was to be paid by the petitioner besides the payment of 6 per cent of monthly sale of the store as franchisee fee and 4 per cent of the monthly sales were to be given to the respondent for advertisement and promotion of authorised products of the respondent. The respondent was also to provide two (and in fact did provide four) managers who were totally in charge of the functions and operations of the franchise store run by. the petitioner.

(3.) The salaries of such managers was to be borne by the petitioner though they were in fact managers chosen and appointed by the respondent to run and supervise the petitioner's outlet.