THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Arbitration Application No.108 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 ETV Building, Ramoji Film City, Hyderabad, rep. by its authorized signatory Sri V.Nagaiah Choudary. …Applicant A n d 1.Mr.Rajesh Kumar Mishra & Anr. …Respondents *** THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Arbitration Application No.108 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. As per the terms of the agreement, 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 minimum period of two years. The 1st respondent joined in the training in applicant’s organization at Ramoji Film City, Hyderabad, on 21.04.2008. 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 absented from training without any sanctioned leave or intimation w.e.f. 05.10.2008. The applicant sent a letter, dated 20.10.2008, advising the 1st respondent to report to training. In response, the 1st respondent sent a reply on 12.11.2008 through Fax stating that he was suffering from viral fever and he will resume training after recovery of ill health and enclosed a medical certificate issued by a Private Medical Practioner. Since the 1st respondent was covered by ESI Scheme, the applicant advised him, vide letter dated 24.11.2008, to submit a medical certificate issued by ESI Hospital, in proof of his ill health, failing which it will be treated that he is absent from training since 05.10.2008 and stringent action will be taken against him. Thereafter, the 1st respondent sent a letter dated 01.12.2008 along with medical certificate which was already sent by him. Again the applicant sent a letter, dated 27.12.2008 to the 1st respondent to report for training or else submit ESI certificate. Despite receipt of the said letter, the 1st respondent neither reported to training nor sent any communication to the applicant. Thereupon, the applicant issued a show-cause notice, dated 06.04.2009 directing the 1st respondent to explain as to why he shall not be discharged from training. A copy of the notice has also been marked to the 2nd respondent for information. Despite receipt of the show-cause notice, the 1st respondent failed to respond to it. 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 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. Notice sent to the 2nd respondent was duly served. Notice sent to the 1st respondent was returned unserved with an endorsement ‘refused’. Therefore, the notice on the 1st respondent is deemed to have been served. Despite service of the 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 2nd respondent served. Notice sent to the 1st respondent returned unserved with an endorsement that he was not staying at the said address. The applicant filed Application No.692 of 2011 seeking permission to take out notice to the 1st respondent by way of publication in “AAJ” and “JANASATTA” Hindi Daily Newspapers. The said application came to be allowed on 18.08.2011 permitting the applicant to take out notice to the 1st respondent by way of publication in “AAJ” and “JANASATTA”, Hindi daily newspapers. The applicant carried out the publication and filed proof of the same. Despite notice being served on the 1st respondent by way of publication, he 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. He discontinued the training and failed to join the training and serve with the applicant for two years. 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.108 of 2010 Date: 29th September, 2011