Amrit Lal Grover. V. International Ile Industries (Nigeria) Limited) (1976)

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FATAYI-WILLIAMS, J.S.C. 

By a written Agreement dated 4th March, 1974, between the plaintiff and the defendant company, the parties agreed inter alia as follows:-

“1 (a) The company shall employ Mr. Grover and Mr. Grover shall serve the company as Garments Manager.

(b) The said appointment shall be deemed to have commenced on the day of Mr. Grover reporting to our above office at Lagos, Nigeria and shall continue subject as hereinafter mentioned for a period of 3 years (three years).

2. Mr. Grover shall be paid a consolidated salary inclusive of bonus, etc. of N390 per month from the date of his reporting at our office at Lagos, Nigeria.

………

8. Mr. Grover hereby expressly covenant with the company as follows:-

(a) to devote the whole of his time and attention during business hours to the duties of Garments Manager of the company;

………

(e) to exercise all reasonable skill, care, diligence in the discharge of his duties as Garments Manger hereby covenanted to be performed by him;

(f) not to do any act or omit anything which may be prejudicial or injurious to the business or interests of the company;

…….

15. Mr Grover will be provided with reasonably furnished accommodation at Nigeria;

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19. If any question shall arise between the parties hereto or between the company and the executors or administrators of Mr. Grover as to the interpretation of this Agreement or as to the rights, duties or liabilities of either party hereunder or as to any act matter or thing arising out of or under this Agreement the same shall be submitted to and decided by the arbitration of two Arbitrators one to be named (whosoever he may be) by each party to the dispute or difference. Such Arbitrators as aforesaid shall have the right to appoint an umpire before taking themselves the burden of the reference and this Agreement shall be deemed to be a submission to arbitration of the said two Arbitrators within the meaning of the Indian Arbitration Act, 1940 or any Act of the legislature passed in substitution thereof and for the time being in force.”

The Agreement was signed by both parties on 6th March, 1974.

Not withstanding the said Agreement, the defendant company, about ten days later, wrote to the plaintiff. This letter dated 15th March, 1974, sent from the defendant company’s headquarters in Lagos, and addressed to the plaintiff in Bombay, reads –

“Mr. Amrit Lal Grover,