Arbitration Agreement – Section 11(6) – Change of employer
Arbitration – Section 11(6) – Dispute between Company running coaching centre and its employees
In 1988, the coaching centre of Allen Career Institute was established as a proprietorship concern. It was continued by the partnership firm Allen Career Institute (ACI) from 1990 to 2022. Thereafter, the entire business and goodwill of the Institute was re-structed from partnership to private limited company as ACIPL.
The respondent joined as Faculty Member in 2018 as per the Contract Service Agreement dated 27.1.2018.
Clause 3.4.2 of CSA provided that if the employees to leave the Institute and not continue the automatic renewal of CSA, it is compulsory to submit a signed resignation letter on or before 30th of November month i.e. four months in advance.
The breach clause provided that the employee will be liable to pay training expenses, double of last drawn salary and all the damages & losses to the Institute.
Clause 3.18.1 provided for arbitration agreement.
On 21.10.2023, the employee had given resignation with immediate effect. The resignation was not accepted.
Thereafter the Section 11(6) of AA petition was filed. This was resisted by the employee. One of the contentions was that there was no privity of contract between the Institute-Company and that the APCIL had given offer letter & letter of transfer of employment. It was contended that as per clause 9.4 of the Offer letter, the CSA was superseded by the Offer / Transfer Employment Letter.
HELD that the employee never repudiated the offer letter, virtually agreed to and continued his employment with the Company in pursuance of the terms of CSA, clause 9.4 of the offer letter cannot be read in isolation from previous clauses 9.1 to 9.3, the offer letter cannot be construed as fresh contract
Order dated 10.12.2024 of the High Court of Rajasthan Bench at Jaipur in S.B.Arbitration Application No.32/2024 of Allen Career Institute Private Limited (Acipl) Vs. Kapil Dev with connected matters.
