S.S. SINHA Vs. HCL TECHNOLOGIES LTD

JUDGEMENT

(1.) THE challenge in this petition under Section 34 of the Arbitration and Conciliation Act, 1996 ('Act') is to an impugned Award dated 5th July 2007 passed by the learned sole Arbitrator in the dispute between the Petitioner, Mr. S.S. Sinha, and the Respondent No. 1, HCL Technologies Limited ('HCL'). By the impugned Award, the learned Arbitrator allowed the claims filed by the HCL in the sum of Rs. 22 lakhs together with interest @ 8% per annum from 1st March 1999 till the date of actual payment and rejected the counter claim filed by the Petitioner.

(2.) THE background to the present petition is that the Petitioner was issued a letter of appointment dated 20th September 1996 by HCL offering him a post of President, Software Development Centre. Apart from specifying the compensation package which worked out to Rs. 1.50 lakhs per month, the said letter inter alia stated that the Petitioner would be covered under "Attractive Performance Bonus Scheme of the company subject to a maximum of Rs. 1,50,000", flexible expenses plan basket of Rs. 5.5 lakhs, hard furnishing scheme up to Rs. 1,50,000. The Petitioner was also covered by the Equity linked Wealth Creation Scheme in the following terms:

(3.) ANOTHER critical document is a mortgage deed dated 28th January 1997, a copy of which was exhibited as P-2 in the arbitral proceedings. This mortgage deed was entered into between the Petitioner's wife and HCL. In the preamble clause of the said mortgage deed, it was noted that the Petitioner's wife had approached the HCL requesting to lend her a sum of Rs. 22 lakhs "on mortgage of the property described in the schedule attached, since she is the sole and absolute owner." The said mortgage deed was signed not only by the wife of the Petitioner but the Petitioner himself as well as a representative of HCL.