{"id":85408,"date":"2011-03-03T00:00:00","date_gmt":"2011-03-02T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/omnia-technologies-p-ltd-vs-w-m-a-van-loosbroek-on-3-march-2011"},"modified":"2017-04-02T02:50:56","modified_gmt":"2017-04-01T21:20:56","slug":"omnia-technologies-p-ltd-vs-w-m-a-van-loosbroek-on-3-march-2011","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/omnia-technologies-p-ltd-vs-w-m-a-van-loosbroek-on-3-march-2011","title":{"rendered":"Omnia Technologies P.Ltd vs W.M.A.Van Loosbroek on 3 March, 2011"},"content":{"rendered":"
Supreme Court of India<\/div>\n
Omnia Technologies P.Ltd vs W.M.A.Van Loosbroek on 3 March, 2011<\/div>\n
Author: T Thakur<\/div>\n
Bench: T.S. Thakur<\/div>\n
                      1\n\n\n\n                                                      REPORTABLE\n\n\n\n\n\n                IN THE SUPREME COURT OF INDIA\n\n\n                CIVIL APPELLATE JURISDICITION\n\n\n           ARBITRATION PETITION NO.10 OF 2010 \n\n\n\n\nOmnia Technologies P. Ltd.                           ...Petitioner\n\n\n\n\n      Versus\n\n\n\n\nW.M.A. Van Loosbroek                                 ...Respondent\n\n\n\n\n\n                        J U D G M E N T\n<\/pre>\n
T.S. THAKUR, J.\n<\/p>\n
1.    The respondent  is  a Dutch  citizen.  He entered into an <\/p>\n
agreement   dated   14th  January,   2008   with   the   petitioner-\n<\/p>\n
company whereby the latter appointed him as its marketing <\/p>\n
representative to promote sale of RFID Tags and <\/p>\n
           2<\/span><\/p>\n
Components   manufactured   by   the   petitioner-company   in <\/p>\n
European   market.   Clause   (1)   of   the   agreement   executed <\/p>\n
between   the   parties   stipulated   the   terms   on   which   the <\/p>\n
respondent was to work as the petitioner’s representative. It <\/p>\n
reads:\n<\/p>\n
           “1.    OMNIA   does   hereby   appoint   PIM   as   its <\/p>\n
                  Representative   for   Europe,   and   PIM   hereby <\/p>\n
                  accepts   the   aforesaid   appointment,   upon   the <\/p>\n
                  following terms:\n<\/p><\/blockquote>\n
<\/blockquote>\n
                  a)    PIM   would   market   the   Products <\/p>\n
                        manufactured by OMNIA, on an exclusive <\/p>\n
                        basis, to his clients in Europe, and would <\/p>\n
                        be responsible for obtaining the business <\/p>\n
                        in the nature of contracts, for supply by <\/p>\n
                        OMNIA.\n<\/p><\/blockquote>\n
\n<\/blockquote>\n
                  b)    PIM would be the front-end, dealing with <\/p>\n
                        the  clients   in  Europe,   and  OMNIA   would <\/p>\n
                        be   introduced   as   the   Indian   Parent <\/p>\n
                        Company.<\/p><\/blockquote>\n
\n<\/blockquote>\n
                  c)    In   all   situations,   PIM   would   be   required <\/p>\n
                        to   introduce   the   two   parties   to   this <\/p>\n
                        Agreement,   as   a   single   entity, <\/p>\n
                        responsible              for           managing <\/p>\n
                        clients\/prospective clients in the whole of <\/p>\n
                        Europe.\n<\/p><\/blockquote>\n
<\/blockquote>\n
                  d)    All   proposals,   documentation   submitted, <\/p>\n
                        would   be   in   the   name   of   OMNIA   as   the <\/p>\n
                        Indian   Parent   Company,   with   PIM   being <\/p>\n
                        reflected   as   Sole   Representative   in <\/p>\n
                        Europe.”\n<\/p><\/blockquote>\n
\n
                         2<\/span><\/p>\n
            3<\/span><\/p>\n<\/blockquote>\n
2.    The agreement in Clauses 2 and 3 thereof set out the <\/p>\n
obligations which the respondent was to discharge and those <\/p>\n
to   be   discharged   by   the   petitioner.   Other   conditions   like <\/p>\n
remuneration   etc.   were   also   stipulated   by   the   agreement <\/p>\n
including obligations cast upon the parties after termination <\/p>\n
of the agreement.   Clause 13 of the agreement relevant in <\/p>\n
this regard, reads:\n<\/p>\n
            “13. Obligations Upon Termination<\/p>\n<\/blockquote>\n
            a)    The   termination   of   this   agreement   shall   not <\/p>\n
                  affect any liability of either party to the other, <\/p>\n
                  accruing   prior   to   the   date   of   termination,   or <\/p>\n
                  arising out of this agreement.\n<\/p><\/blockquote>\n
<\/blockquote>\n
            b)    Upon   termination,   PIM   agrees   to   immediately <\/p>\n
                  discontinue the use of any trademarks or trade <\/p>\n
                  names in whole or in part belonging to OMNIA.<\/p>\n<\/blockquote>\n
            c)    After termination PIM shall not represent, and <\/p>\n
                  shall   not   continue   any   practices,   which   might <\/p>\n
                  take   it,   appear,   that   he   is   still   an   authorized <\/p>\n
                  OMNIA   agent   and   shall   permanently <\/p>\n
                  discontinue   any   use   of   the   word   “OMNIA” <\/p>\n
                  thereform, all without any expenses to OMNIA.<\/p>\n<\/blockquote>\n
            d)    PIM   shall   return   all   manuals,   informational <\/p>\n
                  materials,   instruction   booklets,   and   all   data <\/p>\n
                  and   information   in   printed   form   or   stored   in <\/p>\n
                  floppies,   CD-ROMS,   computer   diskettes,   or   in <\/p>\n
                  any other version or medium that was given by <\/p>\n
                  OMNIA pursuant to this agreement, <\/p>\n
            4<\/span><\/p>\n
            immediately   on   termination   of   this   agreement. <\/p>\n<\/blockquote>\n
                  Electronic   mail   messages   are   excluded.   PIM <\/p>\n
                  shall   destroy   or   render   unusable   all   other <\/p>\n
                  proprietary material and  copies thereof, which <\/p>\n
                  for any reason cannot be delivered to OMNIA. <\/p>\n
                  In   such   event,   PIM   shall   certify   in   writing   to <\/p>\n
                  OMNIA   that   all   proprietary   material   has   been <\/p>\n
                  delivered to OMNIA or destroyed and that PIM <\/p>\n
                  has discontinued use of the same.<\/p>\n<\/blockquote>\n
            e)    Both   the   parties   agree   to   fulfill   all   obligations <\/p>\n
                  to each other under all the work orders in force <\/p>\n
                  at   the   time   of   termination   of   this   agreement <\/p>\n
                  until the completion of the services specified in <\/p>\n
                  the work orders.”\n<\/p><\/blockquote>\n
\n<\/blockquote>\n
3.    It   is   common   ground   that   the   agreement   in   question <\/p>\n
was   terminated   by   the   parties   in   terms   of   another <\/p>\n
agreement dated 29th  February, 2008 executed between the <\/p>\n
parties. This termination purported to be in conformity with <\/p>\n
the provisions of Clause 11 of the Original Agreement. The <\/p>\n
Petitioner-company’s   case   in   the   present   petition   under <\/p>\n
Section 11(6) and (9) of the Arbitration and Conciliation Act, <\/p>\n
1996 is that the respondent has committed a violation of the <\/p>\n
Original   Agreement   inasmuch   as   obligations   cast   upon   the <\/p>\n
respondent under clause 13 of the agreement (supra) have <\/p>\n
not  been   discharged  by  the   respondent  thereby   giving   rise <\/p>\n
to disputes that are in terms of Clause 15 of the original <\/p>\n
                          4<\/span><\/p>\n
            5<\/span><\/p>\n
agreement   arbitrable.   The   petitioner-company   appears   to <\/p>\n
have   invoked   the   arbitration   clause   and   asked   for <\/p>\n
appointment   of   an   Arbitrator   but   since   the   respondent <\/p>\n
refused   to   do   the   needful,   the   petitioner   has   filed   the <\/p>\n
present   petition   and   prayed   for   the   appointment   of   an <\/p>\n
independent Arbitrator to adjudicate upon the said disputes.\n<\/p>\n
4.    Respondent   has  appeared   and  filed  a   counter-affidavit <\/p>\n
in   which   it   was,   inter   alia,   asserted   that   there   is   no <\/p>\n
subsisting `arbitrable’ disputes to call for the appointment of <\/p>\n
an Arbitrator.  The respondent has in this regard relied upon <\/p>\n
Clause   4   of   the   termination   agreement   which   reads   as <\/p>\n
under:\n<\/p>\n
            “4.    Subject   to   the   signing   of   this   termination <\/p>\n
            agreement   by   the   parties,   the   parties   hereby   grant <\/p>\n
            each   other   full   and   final   discharge   from   all   claims, <\/p>\n
            rights and obligations arising out of or relating to the <\/p>\n
            termination   of   the   Representative   Agreement.   The <\/p>\n
            parties acknowledge that thereafter no claims, rights <\/p>\n
            or   obligations   will   remain   existing   on   whatever <\/p>\n
            ground   or   whatever   relation   between   the   parties   in <\/p>\n
            respect of the issue at hand.\n<\/p><\/blockquote>\n
\n
            This   termination   agreement   constitutes   the   entire <\/p>\n
            agreement and understanding between the parties.”<\/p>\n
             6<\/span><\/p>\n<\/blockquote>\n
5.    When   this   petition   came   up   for   hearing   before   me   on <\/p>\n
15th  November, 2010, it was pointed out to learned counsel <\/p>\n
for the respondent that in case this Court was to pronounce <\/p>\n
upon   the   effect   of   Clause   4   of   the   termination   agreement <\/p>\n
finally and further in case this Court were to hold that Clause <\/p>\n
4   did   not   prevent   the   petitioner   from   raising   the   disputes <\/p>\n
regarding   post-termination   obligations   of   the   parties,   the <\/p>\n
Arbitrator appointed  by  this  Court  shall have no option  but <\/p>\n
to   fall   in   line   and   accept   that   determination   as   final   and <\/p>\n
binding  on the parties.  Learned counsel  for  the  respondent <\/p>\n
was,   therefore,   asked   to   take   instructions   whether <\/p>\n
interpretation   of   Clause   4   which   was   by   itself   a   disputed <\/p>\n
matter and requires to be adjudicated upon, could be left to <\/p>\n
be   determined   by   the   Arbitrator.     Learned   counsel   for   the <\/p>\n
respondent has, in response filed a letter consenting to the <\/p>\n
appointment   of   an   Arbitrator   for   adjudication   of   all   issues <\/p>\n
including   the   existence   of   arbitrable   disputes   by   the <\/p>\n
                          6<\/span><\/p>\n
            7<\/span><\/p>\n
Arbitrator   so   appointed.   The   relevant   portion   of   the   letter <\/p>\n
filed on behalf of the respondent is as under:\n<\/p>\n
            “In this connection, learned Senior Advocate Mr. U.U. <\/p>\n
            Lalit   had   mentioned   the   subject   arbitration   petition <\/p>\n
            on   Friday   February   4,   2011   before   Hon’ble   Justice <\/p>\n
            T.S. Thakur in Court No.8 and informed the Hon’ble <\/p>\n
            Court   that   the   Respondent   has   consented   to   the <\/p>\n
            appointment   of   the   arbitrator   by   the   Hon’ble <\/p>\n
            Supreme   Court   of   India   and   further   consented   to <\/p>\n
            raising   all   issues   including   the   existence   of   the <\/p>\n
            arbitral dispute before the appointed arbitrator.  <\/p>\n<\/blockquote>\n
                   As   the   power   of   attorney   holder   of   the <\/p>\n
            respondent is not in the country, I, the Advocate on <\/p>\n
            Record   of   the   Respondent   after   having   taken <\/p>\n
            instructions   would   like   to   place   on   record   through <\/p>\n
            this letter that<\/p>\n<\/blockquote>\n
                   a)     The   Respondent   has   consented   to   the <\/p>\n
                          appointment of arbitrator<\/p>\n<\/blockquote>\n
                   b)     the Respondent has consented to raising <\/p>\n
                          all   the   issues   including   the   existence   of <\/p>\n
                          the   arbitral   dispute   before   the   said <\/p>\n
                          arbitrator.”\n<\/p><\/blockquote>\n
\n<\/blockquote>\n
6.    In   the   light   of   the   above   I   see   no   reason   why   the <\/p>\n
present petition cannot be allowed and all disputes including <\/p>\n
the dispute regarding interpretation and effect of Clause 4 of <\/p>\n
the   termination   agreement   referred   for   adjudication   by <\/p>\n
arbitration.\n<\/p>\n
             8<\/span><\/p>\n
7.    I   accordingly   allow   this   petition   and   refer   all   disputes <\/p>\n
between the parties relating to and arising out of agreement <\/p>\n
dated 14th  January, 2008 and termination  agreement dated <\/p>\n
29th  February,   2008   including   Clause   4   thereof   to   the   sole <\/p>\n
Arbitration Mr. Justice Anil Dev Singh, former Chief Justice of <\/p>\n
Rajasthan   High   Court.   The   parties   are   directed   to   appear <\/p>\n
before   the   nominated   Arbitrator   on   2nd  April,   2011.     The <\/p>\n
Arbitrator   shall   be   free   to   fix   his   fee   and   charges   and   the <\/p>\n
ratio in which the same shall be paid by the parties. Registry <\/p>\n
shall forthwith forward a copy of this order along with a copy <\/p>\n
of the petition  to the worthy  Arbitrator  for  information  and <\/p>\n
necessary action.\n<\/p>\n
                                              ……………………………J.\n<\/p>\n
                                              (T.S. THAKUR)<\/p>\n
New Delhi<\/p>\n
March 3, 2011<\/p>\n
                           8<\/span><\/p>\n
9<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"
Supreme Court of India Omnia Technologies P.Ltd vs W.M.A.Van Loosbroek on 3 March, 2011 Author: T Thakur Bench: T.S. Thakur 1 REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICITION ARBITRATION PETITION NO.10 OF 2010 Omnia Technologies P. Ltd. …Petitioner Versus W.M.A. Van Loosbroek …Respondent J U D G M E N T T.S. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-85408","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"\nOmnia Technologies P.Ltd vs W.M.A.Van Loosbroek on 3 March, 2011 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/omnia-technologies-p-ltd-vs-w-m-a-van-loosbroek-on-3-march-2011\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Omnia Technologies P.Ltd vs W.M.A.Van Loosbroek on 3 March, 2011 - 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