PROGRESSIVE CAREER ACADEMY PVT LTD Vs. FIITJEE LTD

JUDGEMENT

(1.) THIS is an application filed under Section 11 (6) of the Arbitration and Conciliation Act, 1996 ('act' for short)

(2.) AS per the applicants, the respondent No. 1 FIITJEE Ltd. is doing business of coaching for IIT-JEE and State Level Engineering Entrance Test (for short 'sleet') by offering education to aspiring students for success in the said examination/test conducted all over India.

(3.) IN order to expand their business the respondents invited interested parties by way of advertisements to make investment in the business and promised handsome and lucrative returns on the investments. As per their scheme they were to authorize franchisee's to use the trade mark, trade name, design, copyright material and technical knowhow for the purposes of setting up franchise centers at different places for providing coaching for IIT-JEE and SLEET. The applicants entered into an agreement with the respondents on 26-7-2001 (Annexure A-1) for setting up franchise center at Jabalpur. It is stated that the respondents having taken all the considerations payable by the applicants as per the said agreement were obliged to provide the copy-righted material, technical knowhow, training etc. for both the courses, however, they failed in their promise and thereby breached the terms of the agreement. In view of the aforesaid, the applicants issued a notice on 5-4-2005 (Annexure A-38) to the respondents seeking reference of the dispute to the arbitration as per the arbitration clause of the agreement. A reminder dated 11-5-2005 (Annexure A-39) was also sent to the respondents but the applicant's request was not acceded to by them. Under the circumstances the applicants have filed this application.