LAWS(GJH)-2022-4-1596

EVOLUTIONARY SYSTEMS PVT. LTD. Vs. ABHISHEK RUHELA

Decided On April 08, 2022
Evolutionary Systems Pvt. Ltd. Appellant
V/S
Abhishek Ruhela Respondents

JUDGEMENT

(1.) This petition under sec. 11(6) of the Arbitration and Conciliation Act , 1996 is filed seeking appointment of sole Arbitrator.

(2.) The petitioner company appointed the respondent as an Associated Consultant Functional by issuing an appointment letter dtd. 5/3/2018 (Annexure - A) which resulted in a Service Agreement being entered into between them. Under the said service agreement which was entered into between parties on the appointment letter being accepted, respondent has undertaken not to leave the Company for a minimum period of two years three months exclusive of previous notice period. It is alleged in the petition that the respondent all of sudden stopped coming to the office before the completion period w.e.f. 8/2/2019. It is contention of the learned counsel appearing for the petitioner that the respondent has consented to pay to the petitioner a sum of Rs.2,50,000.00 by way of liquidated damages for the training, efforts, etc. which was extended to the respondent by the petitioner. It is further stated that petitioner had tried to contact the respondent to clear the outstanding and it did not yield any result and as such contending that there is breach of terms of the agreement, petitioner had got issued a legal notice on 1/4/2019 calling upon the respondent to pay this aforesaid amount with interest @ 18% p.a. or in the alternative to accord his approval cum sanction for appointment of a sole Arbitrator as agreed to under Clause 8 of the said Service Agreement. It is stated that said notice have been served on respondent. Hence, the petitioner is before this Court seeking appointment of sole Arbitrator. However, the postal acknowledgment tendered along with the petition at Annexure - C does not bear the seal of Postal Department.

(3.) This Court vide order dtd. 19/7/2019 ordered notice on respondent and service of notice was held sufficient vide order dtd. 17/1/2020, on account of respondent having not appeared. This Court by order dtd. 28/2/2020 had observed as under : -