Case Law Details
Buildmyinfra Private Limited Vs Gyan Prakash Mishra (Delhi High Court)
In the present case, the Agreement has indeed been signed by the respondent, who himself resists the appointment of an arbitrator thereunder. The non-signing of the Agreement by the petitioner, who asserts its validity, cannot in these circumstances come to the aid of the respondent when the respondent, in the exchange of communication through counsel, has acknowledged the relationship of employment and also acknowledged the existence of the Agreement itself. The contents of the legal notices sent on behalf of the respondent to the learned counsel for the petitioner indicate that the respondent’s contention was not with regard to the existence of the Agreement but with regard to the validity of its substantive terms. For example, it was asserted on behalf of the respondent that the Agreement was not part of his employment letter or the condition of his employment but a one way document without consideration. It was also contended that the Agreement had lost its validity, but not that it had never been signed or executed by the respondent. This contention of Mr. Rana is therefore rejected.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. By way of this petition under Section 11 of the Arbitration and Conciliation Act, 1996 [“the Act”], the petitioner seeks appointment of an arbitrator to adjudicate the disputes arising between the parties under a “Confidentiality and Non-Compete Agreement” [“the Agreement”] dated 01.07.2019.
2. The contention of the petitioner, which is engaged in the business of providing industrial solutions, is that it issued an offer letter dated 10.07.2018 to the respondent to join its employment and the respondent accepted the same and joined the employment of the petitioner on 17.07.2018. Following his appointment, the respondent signed the Agreement dated 01.07.2019. The recital to the Agreement notes that the respondent was designated as the Project Head – IT & Networking of the petitioner-company and that he had accepted the employment with the employer vide an acceptance letter dated 17.07.2018. The Agreement contains a non-competition clause in clause 2.1 which restrains the employee [respondent herein] from engaging or participating directly or indirectly in a competing business during the period of his employment and for a period of one year thereafter. The consideration under the Agreement is stipulated to be the emoluments paid by the petitioner to the respondent. The Agreement contains an arbitration clause in clause 7.3 which reads as follows:-
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