Where there is an accord and satisfaction of the obligations between the parties, the arbitration agreement contained in a contract cannot be invoked to seek reference to arbitration.

1. The above Application is filed by the Applicant – Mr. Akshat Madan against the Respondent Company – M/s. Darashaw & Co. Pvt. Ltd., for the following relief:

“(a) The Hon'ble Chief Justice or the Hon'ble designated Judge may be pleased to appoint a qualified, independent, impartial fit and proper person as arbitrator to adjudicate disputes and differences between the parties.”

2. The Respondent has disputed any reference to arbitration proceedings on the ground that the employment contract has come to an end and the arbitration clause no longer survives as there has been a full and final settlement between the parties and the Applicant has received his dues to his complete satisfaction and without any protest.

3. The Applicant was a student of the Goa Institute of Management Studies (GIMS). 53 companies had visited the campus during 2012-2013 for recruitment of students for jobs which were to commence after the term ending in April, 2013, and 2014 students were suitably placed in these companies. The Applicant was short listed by the Respondent Company in December 2012. After the Applicant was interviewed and before his appointment was confirmed, the Applicant was admittedly made aware of the terms of the contract, including the term that if he resigns from his employment with the Respondent within two years of his date of joining, he would be liable to pay to the Respondent an amount of Rs. 4 lacs as stipulated in Clause 19 (iii) of the Contract and that under Clause 20 of the said Contract, he was required to hand over a cheque of Rs. 4 lacs as a pre-condition of his employment with the Respondent, and he would furnish a fresh cheque every 2 months until the end of three years. The Respondent was entitled to encash the said cheque in the event of the Applicant committing a breach as stipulated in Clause 19 of the Contract. The Applicant at the time of being short listed issued a letter to the Respondent dated 10th December, 2012 which reads thus:

“Post the visit of Darashaw & Company Pvt. Ltd. to our campus, Goa Institute of Management (GIMS) for Executive Placements 2013, I wish to confirm that I have been shortlisted for the post of Management Trainee.

I am aware that my job entails travel and can be positioned in any of the branches of Darashaw after appointment and am aware of the 3 years contract and have read & understood all the terms and conditions of the Proforma Appointment letter provided at the time of the recruitment process and I agree to the same.”

4. After the Applicant was offered the post of Management Trainee by the Respondent, the Applicant by his letter dated 8th January, 2013 gave the following confirmation:

“I wish to confirm that I have accepted the Darashaw offer for the post of Management Trainee.

I am aware that my job entails travel and can be positioned in any of the branches of Darashaw after appointment and am aware of the 3 years contract and have read and understood all the terms and conditions of the Proforma Appointment letter provided at the time of the recruitment process and I agree to the same”

5. Thereafter the Applicant qualified as a Master of Business Administration (MBA), and executed the Contract on 16th July 2013 (the terms of which he was admittedly made aware of as far back as 10th December, 2013 when he was selected for placement in the Respondent Company during the campus selection), and joined the employment of the Respondent on 19th July, 2013 as a Management Trainee. The Applicant therefore had a choice to join one of the several Companies which had visited the GIMS campus for recruitment of students and had also the choice from December 2012 to July 2013 to reject the offer of the Respondent. Instead, after starting the training on 19th July 2013, and upon conclusion of the classroom training, the Applicant gave his cheque of Rs. 4 lakhs to the Respondent on or about 31st July 2013 and issued fresh/renewal cheques of Rs. 4 lacs on 22nd September, 2013 and on 20th Nov