P. SANTHOSH Vs. J. KISHORE

JUDGEMENT

(1.) The petitioner has assailed the Award passed by the sole Arbitrator dtd. 1/10/2022 by filing the present petition under Sec. 34 of the Arbitration and Conciliation Act, 1996, (for brevity, hereinafter referred to "the Act").

(2.) The brief facts are as follows: The respondent was the claimant before the Arbitral Tribunal. The case of the respondent is that the petitioner approached the respondent and represented that he is an expert in the field of software technology. On the basis of the representation, both of them incorporated a company under the name of "IDEO MIND PRIVATE LIMITED". The further case of the claimant is that both parties contributed a sum of Rs.50,000.00 and each was holding 50% shares and the company commenced business in March, 2017.

(3.) The parties entered into a Memorandum of Understanding dtd. 21/7/2017, whereby the claimant had invested a sum Rs.50,00,000.00 as a loan to the company. It was represented by the petitioner that he will carry forward the business in the name of "IDEO MIND PRIVATE LIMITED" and shall not carry on or solicit any business in the existing companies, or act as a consultant, advisor, director, employee, shareholder, etc., in any other company, either directly or indirectly, and that the petitioner will step down as an Active Director from all the existing companies from the effective date ending on 31/10/2017. The petitioner also agreed and undertook that at no point of time during which the petitioner is a shareholder in the company and for a period of two years thereafter, engage with any person or company in any capacity without the written approval of the claimant.