THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Arbitration Application No.131 of 2010 Date:29th September, 2011 Between: Newstoday (P) Ltd., T.V. Division, a company incorporated under the provisions of the Companies Act, 1956, having its office at Ramoji Film City, Hyderabad, rep. by its authorized signatory Sri V.Nagaiah Choudary. …Applicant A n d 1.Mr.Krishna Murari S/o.Ramshanker Pd.Singh & Anr. …Respondents *** THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Arbitration Application No.131 of 2010 ORDER: This Arbitration Application has been taken out by Newstoday (P) Ltd., under sub-sections (5) and (6) of Section 11 of the Arbitration and Conciliation Act, 1996, (for short, “the Act”), seeking appointment of an arbitrator for resolution of the disputes between the parties relatable to the agreement, dated 15.04.2008. 2. The applicant is engaged, inter alia, in the activity of collection and dissemination of news all over the world through television network etc. The applicant vide its letter dated 31.03.2008 offered the 1st respondent the position of Trainee Copy Editor/Reporter with a training period of one year on a monthly stipend of Rs.7,500/-. As per the terms of the letter, the 1st respondent was required to execute an agreement along with a person, preferably a Government Servant, standing as surety for the due performance and observance of the terms and conditions of the agreement. The 2nd respondent herein stood as surety for the 1st respondent. The respondents 1 and 2 executed an agreement, dated 15.04.2008, whereunder the 1st respondent agreed to complete the training period and to work thereafter for a continuous period of two years in the applicant’s Organization. The 1st respondent joined in the training in applicant’s organization at Ramoji Film City, Hyderabad, on 25.04.2008. As per the terms of the agreement, in the event of the 1st respondent committing breach of the terms, he shall compensate the applicant Company a sum of Rs.1,00,000/-. The 1st respondent, while under training period, absented from training w.e.f. 26.06.2009 without any sanctioned leave or intimation. The applicant sent a letter, dated 23.07.2009, to the 1st respondent advising him to report to training and there was no response from the 1st respondent. Thereupon, the applicant sent a show-cause notice, dated 07.09.2009, to the 1st respondent directing him to show cause as to why he shall not be discharged from the training as he has left the training on his own accord and called upon him to submit his explanation. A copy of the said show-cause notice was also sent to the 2nd respondent for information. In spite of receipt of the said notice, the 1st respondent failed to show-cause. Thereupon, the applicant, vide letter dated 02.11.2009, discharged the 1st respondent from the training and informed the same to the respondents. As per Clause 16 of the agreement, dated 15.04.2008, disputes are required to be referred to the sole arbitrator. The applicant invoked the arbitration clause and issued a notice, dated 10.03.2010 nominating Sri K.Prakash, Advocate, 12-1-1150, Old Mallepally, Hyderabad, as arbitrator and called upon the respondents 1 and 2 to give their consent and agree for the said appointment. The notice sent to the 2nd respondent was duly served and the notice sent to the 1st respondent was returned unserved, though it was sent by registered post with acknowledgement due to the address given by him, and therefore, it shall be deemed that they have been served. Despite the said notice, the respondents did not choose to give any reply. Hence, this application by the applicant seeking the relief stated supra. 3. Notice to the respondents came to be issued on 06.09.2010. Notice sent to the 1st respondent was served. Notice sent to the 2nd respondent returned unserved with an endorsement ‘No such person’. The applicant filed Application No.697 of 2011 seeking permission to take out notice to the 2nd respondent by way of publication in “JANASATTA”, a Hindi Daily Newspaper. The said application came to be allowed on 18.08.2011 permitting the applicant to take out notice to the 2nd respondent by way of publication in “JANASATTA”, Hindi daily newspaper. The applicant carried out the publication and filed proof of the same. Despite notice being served on the respondents, they failed to enter appearance either in person or through a counsel. 4. Heard learned counsel appearing for the applicant and perused the material brought on record. 5. The 1st respondent joined as a Trainee Copy Editor/Reporter in the applicant’s organization after duly executing the agreement, dated 15.04.2008. While under training, he discontinued it, and failed to continue the training. Thereby, he committed breach of the terms of the agreement. The disputes between the parties are required to be resolved by taking recourse to arbitration as provided under Clause 16 of the agreement, dated 15.04.2008. Clause 16 of the agreement, reads as hereunder: “In the event of any dispute (including any Industrial Dispute) or difference which may arise between parties or their representatives with regard to the construction, meaning and effect of this deed or any part thereof or their respective right and liabilities there under, the same shall be referred to the sole arbitration of an arbitrator to be nominated and whose award shall be final and binding on the parties. The provisions of the Arbitration and Conciliation Act, 1996 shall govern the Arbitration Proceedings.” 6. In that view of the matter, I find that the applicant made out valid ground for appointment of an arbitrator for resolution of the disputes between the parties relatable to the agreement, dated 15.04.2008. 7. Accordingly, the Arbitration Application is allowed. Sri M.Bhaskar, Retd. District Judge, is appointed as an arbitrator for resolution of the disputes between the parties relatable to the agreement, dated 15.04.2008. He shall fix his own fee. No order as to costs. ______________________ B.SESHASAYANA REDDY, J. Date:29th September, 2011. cs THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Arbitration Application No.131 of 2010 Date: 29th September, 2011