OMNIA TECHNOLOGIES P LTD Vs. W M A VAN LOOSBROEK
LAWS(SC)-2011-3-15
SUPREME COURT OF INDIA
Decided on March 03,2011

OMNIA TECHNOLOGIES P. LTD. Appellant
VERSUS
W.M.A. VAN LOOSBROEK Respondents

JUDGEMENT

T.S. Thakur, J. - (1.) The Respondent is a Dutch citizen. He entered into an agreement dated 14th January, 2008 with the Petitioner- company whereby the latter appointed him as its marketing representative to promote sale of RFID Tags and Components manufactured by the Petitioner-company in European market. Clause (1) of the agreement executed between the parties stipulated the terms on which the Respondent was to work as the Petitioners representative. It reads: 1. OMNIA does hereby appoint PIM as its Representative for Europe, and PIM hereby accepts the aforesaid appointment, upon the following terms: a) PIM would market the Products manufactured by OMNIA, on an exclusive basis, to his clients in Europe, and would be responsible for obtaining the business in the nature of contracts, for supply by OMNIA. b) PIM would be the front-end, dealing with the clients in Europe, and OMNIA would be introduced as the Indian Parent Company. c) In all situations, PIM would be required to introduce the two parties to this Agreement, as a single entity, responsible for managing clients/prospective clients in the whole of Europe. d) All proposals, documentation submitted, would be in the name of OMNIA as the Indian Parent Company, with PIM being reflected as Sole Representative in Europe.
(2.) The agreement in Clauses 2 and 3 thereof set out the obligations which the Respondent was to discharge and those to be discharged by the Petitioner. Other conditions like remuneration etc. were also stipulated by the agreement including obligations cast upon the parties after termination of the agreement. Clause 13 of the agreement relevant in this regard, reads: 13. Obligations Upon Termination a) The termination of this agreement shall not affect any liability of either party to the other, accruing prior to the date of termination, or arising out of this agreement. b) Upon termination, PIM agrees to immediately discontinue the use of any trademarks or trade names in whole or in part belonging to OMNIA. c) After termination PIM shall not represent, and shall not continue any practices, which might take it, appear, that he is still an authorized OMNIA agent and shall permanently discontinue any use of the word "OMNIA" thereform, all without any expenses to OMNIA. d) PIM shall return all manuals, informational materials, instruction booklets, and all data and information in printed form or stored in floppies, CD-ROMS, computer diskettes, or in any other version or medium that was given by OMNIA pursuant to this agreement, immediately on termination of this agreement. Electronic mail messages are excluded. PIM shall destroy or render unusable all other proprietary material and copies thereof, which for any reason cannot be delivered to OMNIA. In such event, PIM shall certify in writing to OMNIA that all proprietary material has been delivered to OMNIA or destroyed and that PIM has discontinued use of the same. e) Both the parties agree to fulfill all obligations to each other under all the work orders in force at the time of termination of this agreement until the completion of the services specified in the work orders.
(3.) It is common ground that the agreement in question was terminated by the parties in terms of another agreement dated 29th February, 2008 executed between the parties. This termination purported to be in conformity with the provisions of Clause 11 of the Original Agreement. The Petitioner-companys case in the present petition under Section 11(6) and (9) of the Arbitration and Conciliation Act, 1996 is that the Respondent has committed a violation of the Original Agreement inasmuch as obligations cast upon the Respondent under Clause 13 of the agreement (supra) have not been discharged by the Respondent thereby giving rise to disputes that are in terms of Clause 15 of the original agreement arbitrable. The Petitioner-company appears to have invoked the arbitration clause and asked for appointment of an Arbitrator but since the Respondent refused to do the needful, the Petitioner has filed the present petition and prayed for the appointment of an independent Arbitrator to adjudicate upon the said disputes.;


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