Deposit ₹1.5cr to continue using name of education company: HC to Pune school
The order will ensure that the school is able to use the name of the education company for the academic year and save the future of 4,000 students enrolled at the school
The Bombay High Court directed trustees of a city-based school, offering a mix of international and central board curriculum, to deposit ₹1.5 crore with the court, till its dispute with an education company is not resolved through arbitration.
The order will ensure that the school is able to use the name of the education company for the academic year and save the future of 4,000 students enrolled at the school.
The bench of justice GS Kulkarni, while hearing the cross commercial arbitration petitions filed by a trust running a school and a company offering education solutions was informed that the agreement between the two had been terminated in May 2019 and hence, the school could not continue to use the name and trademark of the education company.
The school, however, contended that as admissions for the next academic year had been completed in April and the academic year had commenced, stopping the use of the name would inconvenience the school and affect the future of the 4,000 students enrolled with it.
Both the school trustees and education company submitted that they had claims and counter claims against each other and the same would be resolved as per the terms of their agreement, by invoking arbitration proceedings.
After hearing the submissions from both sides and with their consent, the court appointed a sole arbitrator and made interim arrangements for the current academic year. As per the arrangement the school has been allowed to use the name and trademark of the education company for the current academic year till March 2020, only after which it would be changed to another name.
Further, the school has been asked to deposit ₹1.5 crore within two months with the court, in lieu of which it will be able to continue to use the name and trademark of the education company. The deposited amount would be subject to the final award by the arbitral tribunal and the directions by it. In light of these directions the bench disposed of the petitions.