THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Arbitration Application No.125 of 2010 Date:23rd August, 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.Abhijit Tushar Bhatt & Anr. …Respondents *** THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Arbitration Application No.125 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 arising out of agreement, dated 11.09.2007. 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 letter, dated 29.08.2007, offered the 1st respondent the position of Senior Copy-Editor/Reporter. As per the stipulations in the said 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 is the surety of the 1st respondent. In compliance with the stipulation in the offer, the respondents executed Articles of Agreement, dated 11.09.2007, whereunder the 1st respondent agreed to complete the probation period and to work thereafter for a continuous period of one year and six months with the applicant’s organization. The 1st respondent joined in the applicant’s organization at Ramoji Film City, Hyderabad, on 14.09.2007. After successful completion of probation, the services of the 1st respondent as Senior Copy Editor/Reporter came to be confirmed by the applicant vide letter of employment, dated 01.03.2008. The 1st respondent after completion of his probation period, sent e-mail, dated 27.11.2008, tendering his resignation from services of the applicant Organization. The applicant accepted the resignation of the 1st respondent vide letter, dated 28.11.2008, without prejudice to recover compensation of Rs.75,000/- and called upon the 1st respondent to pay the compensation of Rs.75,000/- within a week from the date of receipt of the letter. The respondents failed to pay the compensation as demanded by the applicant. As per Clause 16 of the agreement, dated 11.09.2007, disputes are required to be referred to the sole arbitrator. The applicant invoked the arbitration clause and issued a notice, dated 25.11.2009 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 respondents having received the notice failed to send their response. Hence, this application by the applicant seeking the relief stated supra. 3. Notice to the respondents came to be issued on 06.09.2010. Despite service of notice, respondents did not choose 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. Learned counsel appearing for the applicant submits that as per the terms of Articles of Agreement, dated 11.09.2007, after successful completion of probation, the 1st respondent agreed to work for a continuous period of one year six months with the applicant’s organization. A further submission has been made that the 1st respondent resigned to his post and left the applicant’s Organization voluntarily and thereby committed breach of the terms of the agreement. A further submission has been made that the disputes between the applicant and the respondents are required to be resolved by a sole arbitrator. Learned counsel refers Clause 16 of the agreement, dated 11.09.2007, which 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. It is evident from the record that the applicant and the respondents entered into an agreement, dated 11.09.2007. The 1st respondent resigned to the post of Senior Copy Editor/Reporter and thereby disputes arose between the parties. The disputes are required to be resolved by a sole arbitrator as per Clause 16 of the agreement. 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 arising out of agreement, dated 11.09.2007. 7. Accordingly, the Arbitration Application is allowed. Sri M.Bhaskar, Retd. District Judge, is appointed as an arbitrator for resolution of the disputes arising out of the agreement, dated 11.09.2007. He shall fix his own fee. No order as to costs. ______________________ B.SESHASAYANA REDDY, J. Date:23rd August, 2011. cs THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Arbitration Application No.125 of 2010 Date: 23rd August, 2011