Delhi High Court - Orders
Picasso Digital Media Pvt Ltd vs Pick A Cent Education And Consultancy ... on 26 April, 2021
Author: C.Hari Shankar
Bench: C.Hari Shankar
$~10 (original)
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ O.M.P. (COMM) 165/2021 & I.A.5830/2021, I.A.5831/2021
PICASSO DIGITAL MEDIA PVT LTD. ..... Petitioner
Through: Mr. Ravi Ranjan, Adv.
versus
PICK A CENT EDUCATION AND CONSULTANCY
SERVICES PVT LTD ..... Respondent
Through: None
CORAM:
HON'BLE MR. JUSTICE C.HARI SHANKAR
ORDER
% 26.04.2021
(Video-Conferencing)
I.A.5831/2021 (exemption)
1. Exemption allowed subject to all just exceptions.
2. The application is disposed of.
O.M.P. (COMM) 165/2021 & I.A.5830/2021 (stay)
1. The petitioner is essentially aggrieved by the decision, of the learned Arbitrator, to award, to the respondent, ₹ 60 lakhs towards mental agony and harassment. The impugned Award awards ₹ 60 lakhs to the respondent for mental agony allegedly suffered by Mr. Vijay Sunder Raj, who was not even a party to the arbitral proceedings. That apart, the Signature Not Verified Digitally Signed By:SUNIL SINGH NEGI OMP (COMM.) 165/2021 Page 1 of 3 Signing Date:30.04.2021 20:34:44 findings of the learned Arbitrator, to justify the award of ₹ 60 lakhs as compensation for mental agony and harassment suffered by Mr. Vijay Sunder Raj (who to reiterate, was not a party to the arbitration) reads thus:
"The circumstances in which MOU dated 05.10.2013 was renewed must have caused mental harassment to Mr. Vijay Sunder Raj. Firstly, he was compelled to clear all the previous royalty dues before renewal of MOU without resolving any of his grievances. Secondly, the way he was called to Delhi Office of the Claimant and was asked to give a hand written request for renewal of the MOU. Even after the renewal of MOU, his grievances regarding the issue of Centennial Certificates was never resolved.
All the above factors must have caused lot of mental harassment to the respondent. All the terms and conditions of the MOU dated 01.07.2009 as well as 05.10.2013 were unilateral Respondent had no option but to run its business as per whims and wishes of the claimant. Really, there was no exit path in the entire agreement between the parties. It could be terminated only by the claimant and respondent had no choice to quit. I have gone through hundreds of emails placed on record by the parties and after considering the entire facts and circumstances, I have come to the conclusion that respondent was really mentally harassed so much that he is entitled to be compensated for the mental harassment caused to him by the claimant.
In view of the above, I award a sum of Rs.60,00,000/- (Sixty Lakhs) as compensation to the respondent for the mental harassment caused to him."
(Italics and underscoring supplied)
2. A reading of the concluding paragraph of the above extracted portion from the impugned Award indicates that the Arbitrator seems erroneously to have proceeded on the premise that Mr. Vijay Sunder Raj Signature Not Verified Digitally Signed By:SUNIL SINGH NEGI OMP (COMM.) 165/2021 Page 2 of 3 Signing Date:30.04.2021 20:34:44 was a party to the arbitral proceedings in person.
3. Besides, the findings of the aforesaid evidence of the learned Arbitrator, awarding ₹ 60 lakhs towards mental agony and harassment appeared to be somewhat perfunctory and presumptive in nature, and the sustainability thereof may be seriously open to doubt.
4. In view thereof, issue notice, returnable on 29th July, 2021.
5. Counter affidavit, if any, be filed within four weeks from today with advance copy to learned Counsel for the petitioner who may file rejoinder thereto within two weeks thereof.
6. Till the next date of hearing, there shall be an ad-interim stay of operation and execution of the impugned Award insofar as it awards ₹60 lakhs as compensation to the respondent towards mental harassment.
7. The Registry is also directed to requisition the arbitral record in electronic format and have copies thereof emailed to learned Counsel for the parties before the next date of hearing.
8. Re-notify on 29th July, 2021.
C.HARI SHANKAR, J Signature Not Verified APRIL 26, 2021/kr Digitally Signed By:SUNIL SINGH NEGI OMP (COMM.) 165/2021 Page 3 of 3 Signing Date:30.04.2021 20:34:44