JOSEPHINE ANCILDA Vs. HDFC BANK LIMITED

JUDGEMENT

(1.) This matter is taken up for hearing through Video-Conferencing.

(2.) The plaintiff had been employed by the second defendant as a Commercial Pilot under a Fixed Term Employment Agreement (FETA) dated 14.01.2011. The said agreement required the plaintiff to serve for a specific period of 5 years. The plaintiff had also as per the terms of the agreement furnished a Bank Guarantee for a sum of Rs. 6,50,000/- on 26.04.2010, apart from executing a indemnity bond cum service undertaking. The plaintiff tendered her resignation on 05.08.2012 and the same was accepted by the second respondent without prejudice to its rights under the Fixed Term Employment Agreement dated 14.01.2011. When the second respondent sought to invoke the Bank guarantee on the ground that the plaintiff has committed breach of the Fixed Term Employment Agreement, the plaintiff filed the above suit seeking a permanent injunction.

(3.) Upon service of notice, the second defendant/second respondent viz., the employer filed an application in IA No. 1110 of 2012 seeking a decision on the preliminary issue as to the jurisdiction of the Court to entertain the suit and a reference to arbitration under Section 8 of the Arbitration and Conciliation Act, 1996. It was the primary contention of the second defendant/second respondent that the Fixed Term Employment Agreement dated 14.01.2011 contains an Arbitration Clause and therefore, the suit cannot be proceeded with. It further pleaded that the parties have agreed to restrict the jurisdiction of Courts regarding disputes under the Fixed Term Employment Agreement to Courts at Delhi, and therefore, the Sub Court, Tambaram, lacks territorial jurisdiction to try the suit. The second respondent employer relied upon Clause 16 of the Fixed Term Employment Agreement in support of its contentions.