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Bombay High Court

D Y PATIL INTERNATIONAL SCHOOLversusGauri Dharne

Decided
Disposal
DISPOSED OFF

Holding

The Court held that the arbitration clause is enforceable and appointed a sole arbitrator to adjudicate the disputes arising under the agreement.

Summary

The D.Y. Patil International School (Applicant) employed Gauri Dharne (Respondent) under a service agreement dated 1 September 2024 that contained an arbitration clause (Clause 21). A dispute arose when the Respondent left employment without giving the three‑month notice required by the agreement. The Applicant served a notice of arbitration on 16 January 2026, but the Respondent did not respond. The Court examined the arbitration clause and the invocation notice and, relying on the Arbitration and Conciliation Act, 1996, appointed Mr. Anurag Jain as the sole arbitrator to resolve the dispute. The Court directed the parties to cooperate with the arbitrator, set the seat of arbitration as per the agreement, and ordered equal sharing of arbitral costs initially. All contentions were kept open for adjudication before the arbitrator, and the arbitration application was disposed of accordingly.

Issues considered

  • Whether the arbitration clause in the service agreement is enforceable and permits the Court to appoint a sole arbitrator.
  • Whether the waiver of appeal in the arbitration agreement is valid under the Arbitration and Conciliation Act, 1996.
  • Whether the Court has jurisdiction to direct the parties to proceed with arbitration despite the Respondent’s non‑response to the invocation notice.

Legislation cited

Subjects

  • Arbitration
  • Service Agreement
  • Employment Termination
  • Waiver of Appeal
  • Sole Arbitrator Appointment
  • Arbitration Costs
  • Seat of Arbitration

Judgment

            IN THE HIGH COURT OF JUDICATURE AT BOMBAY
               ORDINARY ORIGINAL CIVIL JURISDICTION

     COMMERCIAL ARBITRATION APPLICATION NO.211 OF 2026


D.Y. Patil International School               .. Applicant
       Vs.
Gauri Dharne                                  .. Respondent

Mr. A.P. Steenson i/b APS Law Associates, for Applicant.
None for Respondent.

                                  CORAM : ARUN R. PEDNEKER, J.
                                  DATE   : 2nd July 2026.

P.C. :


1.       Heard learned counsel appearing for the Applicant.

2.       None appeared on behalf of the Respondent. On the previous date of

hearing, i.e., 5th May 2026, no one had appeared for the Respondent.

However, on 11th June 2026, the Respondent appeared in person and sought

time to engage an Advocate.

3.       Learned Counsel appearing for the Applicant submits that Respondent

No. 1 was appointed as an employee by the Applicant. It is further submitted

that the appointment order contains a dispute resolution clause, namely

Clause 21 of the Service Agreement dated 1st September 2024 (at page 41),

which reads as follows:


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        21. ARBITRATION

        (i) If a dispute arises between the Parties, either Party may
        serve written notice on the other commencing a formal
        consultation period of [fifteen (15)] days within which the
        dispute should be resolved (the "Consultation Period").

        (ii) In case an amicable settlement cannot be reached during
        the Consultation Period, the dispute shall be finally settled as
        per the provisions of the Arbitration and Conciliation Act, 1996
        each Party appointing one arbitrator. The award shall be in
        writing, and shall specify the reasons for and the facts on
        which such decision was reached. The award shall be final and
        binding on the Parties. The Parties hereby waive their right to
        any form of appeal insofar as such waiver can validly be made.

        (iii) The place of arbitration shall be Pune. The arbitration
        proceedings shall be in the English language.

        (iv) During the period of submission of arbitration and
        thereafter until the granting of the award, the Parties shall
        continue to perform all their obligations under this Agreement
        without prejudice to a finial adjustment in accordance with
        such award. The cost of the Arbitration will be borne by the
        losing party.

        (v) None of the parties may disclose the existence, content
        or results of any arbitration hereunder without the prior written
        consent of each of the other.”

4.     Learned Counsel for the Applicant submits that certain disputes have

arisen between the parties, inter alia, on the ground that Respondent No. 1

left the Applicant's service without serving the mandatory three months'

notice as stipulated under the terms of the employment agreement.

Consequently, disputes have arisen between the parties. It is further

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submitted that an invocation notice dated 16 th January 2026 was issued to

Respondent No.1 invoking the arbitration agreement. However, despite

service of the said notice, no response has been received from the

Respondent.

5.     Having considered the arbitration agreement, particularly Clause 21

thereof, as well as the invocation notice placed on record, this Court is

inclined to pass the following order:-

                                   ORDER

(A)    Mr. Anurag Jain, learned Advocate of this Court is appointed as the

sole Arbitrator to adjudicate upon the disputes and differences between the

parties arising out of and in connection with the Agreement referred to

above. The contact details of the Arbitrator are as under :-

       Address          :   Office No.501, Varun Capital,
                            S. No.364+365/14,
                            Next to Hotel Sudama,
                            Lane Opp. Jangali Maharaj Temple,
                            Shivaji Nagar, Pune – 411 005

       Mobile No. :         9833759856

(B)    A copy of this order be communicated to the learned sole Arbitrator by

the Advocates for the Applicant within a period of 1 week from the date of

uploading of this order.       The Applicant shall provide the contact and

communication particulars of the parties to the Arbitral Tribunal along with a

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copy of this order.

(C)    Seat of the arbitration would be governed by the provisions of the

agreement executed between the parties.

(D)    Learned sole Arbitrator is requested to forward the statutory Statement

of Disclosure under Section 11(8) read with Section 12(1) of the Act to the

Advocates for the Applicant so as to enable them to file the same in the

Registry of this Court. The Registry of this Court shall retain the said

Statement on the file of this Application and a copy of the same shall be

furnished by the Advocates for the Applicant to the Respondent.

(E)    The parties shall appear before the learned sole Arbitrator on such date

and at such place as indicated by his, to obtain appropriate direction with

regard to conduct of the arbitration including fixing a schedule for pleadings,

examination of witnesses, if any, schedule of hearings etc. At such meeting,

the parties shall provide a valid and functional email address along with

mobile and landline numbers, if any, of the respective Advocates of the

parties to the Arbitral Tribunal. Communications to such email addresses

shall constitute valid service of correspondence in connection with the

arbitration.

(F)    All arbitral costs and fees of the Arbitral Tribunal shall be borne by

the parties equally in the first instance and shall be subject to any final

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Award that may be passed by the Tribunal in relation to costs.

5.     All contentions are expressly kept open to be agitated before the

Arbitral Tribunal appointed as above.

6.     With the above directions, Arbitration Application stands disposed of

accordingly.



                                                 (ARUN R. PEDNEKER, J.)




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