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Dr Adarsh Koppula vs Nayati Healthcare And Research Pvt Ltd ... on 28 July, 2022

Author: Neena Bansal Krishna

Bench: Neena Bansal Krishna

                          $~6
                          *     IN THE HIGH COURT OF DELHI AT NEW DELHI
                          +     ARB.P. 1239/2021
                                DR ADARSH KOPPULA                                         ..... Petitioner
                                             Through: Mr. Sandeep Kapoor, Advocate.
                                             versus
                                NAYATI HEALTHCARE AND RESEARCH PVT LTD AND ANR.
                                                                                    ..... Respondents
                                                    Through:     Mr. Sumant De, Advocate.
                                CORAM:
                                HON'BLE MS. JUSTICE NEENA BANSAL KRISHNA
                                                    ORDER

% 28.07.2022

1. The present petition has been filed under Section 11(6) read with Section 11(8) of the Arbitration and Conciliation Act, 1996 on behalf of the petitioner seeking appointment of an Arbitrator to adjudicate the disputes between the parties.

2. It is submitted in the petition that the petitioner has worked in respondent's Organization from 07th December, 2017 to 11th April, 2019 in the Retainership position of Chairman in the Department of Cardiovascular and Thoracic Surgery within the terms of the Medical Services Agreement (hereinafter referred to as the "MSA") dated 07th December, 2017.

3. An Offer Letter dated 03rd November, 2017 was given with the consideration amount of Rs. 12,50,000/- per month with family accommodation and other amenities. The petitioner was also assured monthly payments on or before the 10th of the next calendar month.

4. The petitioner joined his duties on 07th December, 2017 and discharged his duties with diligence, dedication and hard work and the Signature Not Verified Signed By:NIRMLA TIWARI Signing Date:04.08.2022 16:55:11 petitioner also took interest in teaching and training his team members and in the overall academic and research activities of the hospital.

5. The respondent vide its Letter dated 21st June, 2018 changed its name from M/s. Nayati Healthcare & Research Pvt. Ltd. to M/s. Nayati Healthcare & Research NCR Pvt. Ltd. A new MSA Agreement was executed on same terms and conditions.

6. The petitioner has asserted that there was a trend of delayed disbursement of salaries of the doctors and staff, which made it difficult for him to keep up the motivation levels of his team members.

7. From April, 2019, the respondent stopped paying the salaries to the petitioner. When the petitioner spoke to the HR Department, Finance Head, CEO and CMD of the respondent, he got only assurances without any improvement. Thereafter, the petitioner decided not to renew the MSA, which expired on 31st March, 2019.

8. The petitioner tendered his formal Resignation Letter on 10th April, 2019. The petitioner also made a request for release of his outstanding salaries and dues. He also sought TDS Certificate or Form 16A for his tenure engagement. The Resignation Letter was accepted by the respondent and the Relieving Letter was issued on 11th April, 2019. The petitioner was assured that his full and final payment of outstanding salaries would be paid in the next few days. However, the petitioner's outstanding dues and salaries have not been released despite request.

9. The petitioner sent a Demand Legal Notice dated 08th September, 2021 to the respondent for release of his salaries and dues, amounting to Rs. 49,12,500/- within 14 days or else to pay 18% interest on account of delay, which amounted to Rs. 23,60,962/-.

10. The petitioner then issued a Legal Notice dated 29th September, 2021 invoking Clause 8 of MSA for Arbitration. However, the Arbitrator has not been appointed.

11. A prayer has, therefore, been made that an Arbitrator may be appointed.

12. The perusal of the Office Noting shows that the reply on behalf of the respondents vide Diary No. 438188/2022 dated 26th March, 2022 is lying under objection and no steps have been taken to bring the same on record by the respondents.

13. Learned counsel for the respondent has submitted that without prejudice to their claims and defences, the matter may be referred to arbitration and an Arbitrator be appointed to adjudicate the disputes between the parties.

14. Submissions heard.

15. The existence of arbitration Clause No. 8 in MSA has not been disputed by both the parties, which reads as under:

"8. DISPUTE RESOLUTON PROCESS:-

8.1 Disputes Generally - Subject to clause 8.2, any disputes between the parties or in connection with this Agreement may be dealt with under this Clause 8.

8.2 Clinical Matters - Any disputes in connection with a clinical conduct cannot be dealt with under this Clause 8, but will be subject and dealt with in accordance with the procedures in respect to clinical privileges, conduct and governance under the applicable laws and Hospital Policy, rules and regulations, etc. 8.3 Notification of Dispute - Either party may notify a dispute by written notice to the other party adequately identifying the issue the subject of the dispute.

8.4 Reasonable Efforts - The Consultant and the Company agree Signature Not Verified Signed By:NIRMLA TIWARI Signing Date:04.08.2022 16:55:11 to use their reasonable efforts to negotiate in good faith in order to resolve any dispute.

8.5 Convening of Meeting - If the parties are unable to resolve their disputes within fourteen (14) days from the issue of a dispute notice or as such time agreed by the parties in writing, a director of the Company shall as soon as practicable convene a meeting with the Consultant to resolve the disputes.

8.6 Arbitration - If seven (7) days from the convening of the meeting under Clause 8.5, the disputes remains unresolved, the disputes shall be decided in accordance with the arbitration provisions contained in clause 14.3 hereto."

16. In view of the submissions made, the petition is allowed and Mr. O.P. Gupta, District Judge (Retd.), Mobile No. 9910384645, is hereby appointed as the Arbitrator to adjudicate the disputes between the parties.

17. The parties are directed to appear before the learned Arbitrator as and when notified. This is subject to the Arbitrator making necessary disclosure(s) under Section 12(1) of the A&C Act, 1996 and not being ineligible under Section 12(5) of the A&C Act, 1996.

18. Both the parties shall be free to raise their claims/counter-claims before the learned Arbitrator in accordance with law.

19. Both the parties have submitted that there is a possibility of settlement between the parties. The Order of Appointment of the Arbitrator is kept in abeyance for a period of six weeks. In the meantime, if the parties resolve their disputes, an intimation to that effect shall be sent to the learned Arbitrator, failing which the arbitration proceedings shall commence.

20. The petition is disposed of in the above terms.

NEENA BANSAL KRISHNA, J JULY 28, 2022/S.Sharma Signature Not Verified Signed By:NIRMLA TIWARI Signing Date:04.08.2022 16:55:11