THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Arbitration Application No.117 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.Ms.C.Prathibha & Anr. …Respondents *** THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Arbitration Application No.117 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 28.06.2008. 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 offered the 1st respondent under letter, dated 18.06.2008, the position of Trainee News Caster with a training period of one year. 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 letter, dated 18.06.2008, the respondents executed Articles of Agreement, dated 28.06.2008, whereunder the 1st respondent agreed to complete the training period and to work thereafter for a minimum period of two years. The 1st respondent joined in the training in applicant’s organization at Ramoji Film City, Hyderabad, on 03.07.2008. As per the agreement, in case of the 1st respondent failing to perform her obligations during training period, she shall compensate the applicant for a sum of Rs.1,00,000/-. The 1st respondent while undergoing training period abstained from training without sanctioned leave or intimation from 01.02.2009. The applicant issued a letter, dated 12.02.2009, advising the 1st respondent to report to training. Despite receipt of the said letter, the 1st respondent failed to report to training. Thereupon, the applicant issued a notice, dated 05.03.2009, to the 1st respondent as to why she shall not be discharged from training considering as she left the training voluntarily on her own accord. A copy of the notice has also been marked to the 2nd respondent for information. On receipt of the said notice, the 1st respondent sent an e-mail, dated 25.03.2009, tendering her resignation and requesting to accept the same. The applicant sent a reply e-mail to the 1st respondent on 07.04.2009 directing her either to pay the compensation of Rs.1,00,000/- or to continue the training by withdrawing her resignation. A copy of the reply e-mail also sent to the 2nd respondent for information. Despite receipt of the said reply e-mail, the 1st respondent neither paid the compensation nor sent any intimation to the applicant. As such, the applicant while considering that the respondent No.1 has no interest to continue the training, vide letter, dated 06.05.2009, accepted her resignation without prejudice to their right to recover the compensation amount of Rs.1,00,000/- and called upon both the respondents to pay the said amount jointly and severally within a fortnight. The respondents failed to pay the compensation. Thereby, the 1st respondent committed breach of Clause 6 of the agreement, dated 28.06.2008, rendering herself along with 2nd respondent, liable to pay compensation. As per Clause 16 of the agreement, dated 28.06.2008, 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 notices sent to the respondents returned unserved. 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 28.06.2008, the 1st respondent agreed to work as a Trainee News Caster in the applicant Company for a continuance period of three years including the training period. A further submission has been made that the 1st respondent left the training voluntarily and thereby committed breach of the terms of the agreement. 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 28.06.2008, 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 28.06.2008. The 1st respondent discontinued the training 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 28.06.2008. 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 28.06.2008. 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.117 of 2010 Date: 23rd August, 2011