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2025 DAILYLAW 25577 (KAR)

TTK SERVICES PRIVATE LIMITED v. MR. SAGARA SUBUDHI

CMP/230/2024 · 2025-02-14

Sachin Shankar Magadum

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Judgment text

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- 1 - NC: 2025:KHC:6816 CMP No. 230 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14TH DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM CIVIL MISC. PETITION NO. 230 OF 2024 BETWEEN: 1. TTK SERVICES PRIVATE LIMITED REPRESENTED BY REKHA MAHESHWARI ITS COMPANY SECRETARY, SY NO.68 SMARTWORKS, 4TH FLOOR, TOWER B DSR TECHNO CUBE, VARTHUR ROAD THUBARAHALLI, BANGALORE-560 066 KARNATAKA. …PETITIONER (BY SRI. SAMARTH SHREEDHAR, ADVOCATE) AND: 1. MR. SAGARA SUBUDHI B-12, RAJHANS KUTUMB AHINSA KHAND-1, INDIRAPURAM GHAZAIBAD-201 014. 2. MS. TUMULU ANNAPURNA TRADING AS "THE IMMI HUB" LGF-2, OFFICE NO. 24 RAJHANS PLAZA, AHINSA KHAND-I INDIRAPURAM, GHAZIABAD-201 014. …RESPONDENTS (BY SRI. THAKUR RISHABHA RAJ, ADVOCATE) THIS CIVIL MISC. PETITION IS FILED UNDER SECTION 11(6) OF THE ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO APPOINT MR. ASWATHA NARAYANA, OR SUCH OTHER PERSON AS THIS HONBLE COURT MAY DEEM FIT, AS Digitally signed by AL BHAGYA Location: HIGH COURT OF KARNATKA - 2 - NC: 2025:KHC:6816 CMP No. 230 of 2024 THE SOLE ARBITRATOR AND REFER THE DISPUTES RAISED BY THE PETITIONER UNDER CLAUSE 10 OF THE EMPLOYMENT AGREEMENT DATED 25TH MARCH 2013 FOR ADJUDICATION VIDE ANNEXURE-B. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM ORAL ORDER The captioned Civil Miscellaneous Petition is filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short "the Act") seeking appointment of a sole arbitrator to resolve the disputes raised by the petitioner under Clause 10 of the Employment Agreement dated 25.3.2013 for adjuciation. 2. Respondents are served with notice and have engaged a learned counsel. 3. Petitioner contends that respondent No.1 was initially appointed on a probationary basis and, over time, was promoted to higher positions within the company. In the course of his employment, respondent No.1 had - 3 - NC: 2025:KHC:6816 CMP No. 230 of 2024 access to sensitive and confidential information, including proprietary business strategies, client databases, and internal operational protocols of the petitioner company. Petitioner asserts that respondent No.1 had entered into an Employment and Non-Disclosure Agreement dated 25.03.2013, wherein he explicitly undertook to safeguard the company’s confidential information and further agreed to abide by non-solicitation and non-compete clauses, both during and after his tenure with the petitioner. Additionally, respondent No.1 is stated to have signed an Employment Compliance Undertaking on 10.02.2020, reaffirming his commitment to these obligations. 4. Despite these contractual commitments, petitioner alleges that respondent No.1, by virtue of his senior position and the trust reposed in him, misused his access to confidential data and surreptitiously commenced a rival business under the trade name "The Immi Hub." It is further asserted that respondent No.2, who is none other than the wife of respondent No.1, is the sole - 4 - NC: 2025:KHC:6816 CMP No. 230 of 2024 proprietrix of this competing enterprise. Petitioner claims that respondent No.1’s actions are in clear breach of his contractual obligations and constitute a violation of the restrictive covenants contained in the agreements executed between the parties. In support of its claims, petitioner has relied upon a written confession letter purportedly authored by respondent No.1, which, according to the petitioner, establishes respondent No.1’s admission of misconduct. Consequently, the petitioner issued a cease-and-desist notice dated 28.06.2023, demanding immediate cessation of all activities detrimental to its business interests. However, respondent No.1, in his reply dated 20.07.2023, denied the allegations contained in the cease-and-desist notice and, in turn, raised a monetary demand of Rs.50,00,000/- from the petitioner. 5. In light of the above circumstances, the petitioner, invoking Clause 10 of the Employment Agreement, issued a formal notice under Section 21 of the - 5 - NC: 2025:KHC:6816 CMP No. 230 of 2024 Arbitration and Conciliation Act, 1996, proposing the appointment of a sole arbitrator to adjudicate the dispute. The said notice has been contested by respondent No.1, who, in his reply dated 12.01.2024, has raised objections regarding the arbitrator suggested by the petitioner. On the other hand, learned counsel for the respondents, while acknowledging the existence of an arbitration clause, has fairly conceded that respondent No.2 is not contesting the present petition. However, both respondents have expressed strong reservations regarding the arbitrator proposed by the petitioner . 6. Having examined the annexures annexed along with the civil miscellaneous petition and having regard to the fact that respondents acknowledge the existence of arbitration clause, this Court is of the view that the petitioner has satisfied the mandate provided under Section 11(4) of the Act, 1996. 7. Accordingly, this Court proceeds to pass the following: - 6 - NC: 2025:KHC:6816 CMP No. 230 of 2024 ORDER (i) The Civil Miscellaneous petition is allowed appointing Shri. Veeranna G. Tigadi, Retired District Judge, as the sole Arbitrator to enter reference of the disputes between the petitioner and the respondent and conduct proceedings at the Arbitration and Conciliation Centre (Domestic and International), Bengaluru, according to the Rules governing the said Arbitration Centre. (ii) All contentions inter se parties are left open for adjudication in the arbitration proceedings. (iii) The office is directed to communicate this order to the Arbitration and Conciliation Centre and to Shri. Veeranna G. Tigadi, Retired District Judge, as required under the Arbitration and Conciliation Centre Rules, 2012. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE ALB List No.: 3 Sl No.: 16