Jet Airways Case.docx

Jet Airways Case.docx

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JetAirwaysCase

JetAirways（I）Ltd.（plaintiff）

vs

Mr.JanPeterRaviKarnik（defendant）

2.Theplaintiffseeksanorderofpermanentinjunctionrestrainingthedefendantfromtaking;uporcontinuinganyemploymentuntil11thOctober,2005withanyotherAirline,includingSaharaAirlinesforthepurposeofoperatingaircraftonthebasisoftheendorsementofthelicenceobtainedasaresultofthetrainingprovidedbytheplaintiff,thatistosay,foroperatingB737Series300/400/500.Theplaintiffalsoseeksamoney,decreeagainstthedefendantsinthesumofRs.6,94,000/-togetherwithinterestattherateof24percentperannumfromthedateofthefilingofthesuituntilpaymentorrealisation.

4.TheplaintiffcarriesonthebusinessofAirtransportcarrierwithinIndiaandoperatesafleetofmodernAircraft.TheplaintiffcommencedoperationinMay,1993.It;decidedtooperateandexpanditsfleetbasedonthelatestseriesofBoeing737aircraftinIndiaonlytheAircraft737-200wasoperated.Theplaintiff,however,introducedtheseriesB737-300/400.TheplaintiffwasthefirstAirlinetoinductthesetwoseriesofaircraftsinIndia.Whentheplaintiffcommencedoperations,therewerenopilotsinIndiawhowereratedforthistypeofaircrafti.e.whowerevalidlicencesendorsedbytheDirectorGeneralofCivilAviation（DGCA）toflythistypeofaircraft.Theplaintiff,therefore,embarkedonamanpowerplanofrecruitingIndianpilotsandtrainingintheFirstOfficersandCommanders.IntheinitialyearoftheAirlinesoperation,theAircraftwerecommandedbyforeigninstructorswhoweretrainingtheplaintiffIndianPilots.

ThedefendantwasemployedbythePlaintiffafteraninterviewon30thApril,1998.Priortojoiningtheplaintiff,thedefendantwasemployedbytheIndianNavyandthereafterbySpanAir.Whenthedefendantjoinedtheplaintiff,hehadbeenflyingSuperKingAir8200",InordertoequipthepilotsforoperatingB-737/300/400seriesanintensivetraininghastobeundertaken.Theplaintifforganisedthenecessarytrainingforthedefendantandtheotherpilots.Intheletterofappointmentdated30thApril,1998thedefendantwasofferedthepostofTraineeFirstOfficeroncertaintermsandconditions.Inconsiderationoftheplaintiffmakingthearrangementforthetrainingofthedefendant,thedefendantagreedandundertookthatduringaperiodof7yearsfromthedateofcompletionoftraininginIndiaandabroadandonresumingactualserviceswiththeplaintiffasFirstOfficer,hewouldnotacceptemployment,similarinnature,eitherinfulltimeorparttimewithanyotheremployer.Intheeventofthedefendantresigningfromtheservices,hewouldmakegoodtotheplaintiffentirecostinrespectoftrainingand/ordamage,ifany.

Thedefendantjoinedtheservicesoftheplaintiffw.e.f.4thMay,1998.ThetotalcostoftrainingisapproximatelyRs.15lakhs.Therefore,thedefendanthadagreedtoprovideabankGuarantee/depositforasumofRs.7.5lakhsforaperiodof7years.ThebalanceRs.7.5lakhswastoberecoveredininstalmentsfromthesalaryofthedefendantaftersuccessfulcompletionoftrainingoveraperiodof3years.Inadditiontothis,thedefendantwasrequiredtoexecutetheindemnitybondwithtwosuretiesforanamountofRs.7.5lakhsandagreeingtoservethecompanyforaperiodof7years.Intheindemnitybond,thedefendantalsoagreedtoservethecompanyfortheagreedperiodof7yearsandnottoleaveorterminatetheserviceswiththecompanytilltheexpirationoftheperiodof7years.Itwasfurtheragreedthatduringtheperiodof7years,thedefendantshallnotacceptemploymentsimilarinnatureeitherfulltimeorparttimewithanyotheremployer.TheperiodofsevenyearsistobecomputedfromthetimeofthecompletionofthetraininginIndiaandabroadandonthedefendantresumingactualservicewiththeplaintiffasaFirstOfficer.ThedefendantfailedtofulfilhisobligationsundertheletterofappointmentanddidnotprovidetheBankGuaranteeforRs.7.5lakhsorexecutetheindemnitybond.Onarequestmadebythefirstofficeroftheplaintiffsandthedifficultyexpressedbythemtheplaintiffamendedthetermsoftheletterofappointmentbyletterdated16thJuly,1998.UltimatelyalltheconditionsweresatisfiedbythedefendantandhewassentfortrainingtoMalaysiabetween11thMay,1998and11thJune,1998andbetween15thAugust,1998and5thSeptember,1998.TheplaintiffincurredanamountofRs.11,31,400onthetrainingofthedefendant.Onthebasisofthetraining,thedefendantobtainedB-737-300/400/500,P2endorsementwitheffectfrom12thOctober,1998.Thedefendantwasconfirmedinserviceoftheplaintiffon6thFebruary,1999.Byletterdated4thDecember,1999,thedefendantresignedfromtheservicesoftheplaintiffwithimmediateeffect.Thereasonstatedforresignationwastheadversechangestotheruleofseniority.On27thDecember,1999thedefendantwasinformedthathehadwrongfullyabandonedtheservicesoftheplaintiffinbreachofthetermsofemploymentand,therefore,necessarylegalstepswillbeinstitutedagainsthim.

5.Therelevanttermsandconditionsoftheappointmentasgivenintheletterdated30thApril,1998areasunder.

"1,youshallbeinpossessionofvalidIndianALTP/IR/FRTQ/RTR/Licence.

3.Youwillbeinitiallyontrainingforwhichthecompanywillmakenecessaryarrangements.Youwillhavetopassthecompany'stechnical/performanceexaminationandtheDGCATechnicalExaminationforB-737-300/400endorsementwithintwoattempts,failingwhichyourtrainingwillstandautomaticallyterminated.

YouwillhavetocompletesuccessfullysimulatorandflyingtrainingandobtainB-737-300/400endorsement,shouldyoufailtoobtainthesamewithincompany'sstipulatedtime,yourtrainingshallstandterminated.

Detailsofthetrainingwillbeintimatedto-youseparately.OhsuccessfulcompletionofyourtrainingincludingSimulatorandFlyingtrainingandonobtainingB-737-300/400endorsementyoushallbeonprobation.

6.ThetotalcostofyourtrainingisestimatedatapproximatelyatRs.15.0lakhs（RupeesFifteenLakhsonly）whichyouarerequiredtopaybacktothecompany.YouwillberequiredtoprovideaBankGuarantee/DepositforasumofRs.7.50lakhsforaperiodof7years.ThebalanceofRs.7.50lakhs（RupeesSevenlakhsandfiftythousand）willberecoveredininstalmentsfromyoursalarythatyouwillbeentitledaftersuccessfulcompletionoftrainingandbeingclearedforflyingduties,overaperiodof3yearsatsuchratesasmaybefixedbythecompany.InadditiontotheaboveyouwillberequiredtoexecuteanindemnitybondwithtwosuretiesforanamountofRs.7.5lakh（RupeesSevenLakhsFiftyThousandonly）andagreeingtoservethecompanyfortheagreedperiodofsevenyearsandshallnotleaveorterminateyourserviceswiththecompanytilltheexpirationofthesaidperiodof7years.Duringthisperiodof7years,youshallnotacceptemployment,similarinnature,eitherfulltimeorparttimewithanyotheremployer.Thisperiodof7yearsshallbecomputedfromtheperiodofthecompletionoftheabovesaidtraininginIndiaandabroadandonresumingactualserviceswiththeemployercompanyasaFirstOfficer.

21.Youwillberequiredtoservethecompanyforaminimumperiodof7yearsfromthedateofyourobtainingB-737-300/400endorsementonyourflyinglicence.Intheeventofyourresigning/leavingtheservicebeforethecompletionoftheperiodaforesaidforanyreasonwhatsoever,youshallmakegoodandpaytothecompanytheentirecostinrespectoftrainingand/ordamages,ifany.

22.Duringthisperiodofsevenyears,youshallbeexclusivelyemployedbyJetAirwaysandperformyourdutiestowardsJetAirways.Youshallagreethatduringthesaidperiodofsevenyearsyoushallnottakeupemploymentwithanyotherpersons/organisations/companiesrequiringyoutoperformsimilardutiesasrequiredtobeperformedbyJetAirwaysandshallnotengageinanysimilarbusinessorvocationrequiringyoutoflyanyotherAircraft.

23.Afterconfirmation,thecompanywouldbeentitledtoterminateyourserviceswithoutassigninganyreason,bygivingyouthreemonthsnoticeinwritingorbypaymentofthreemonthssalaryinlieuofsuchnotice.Intheeventofyourdesiringtoleavetheservicesofthecompanyatanytimeafterconfirmation,youshallgivetothecompanythreemonthsnoticeinwritingprovidedthatthecompanymay,atitssolediscretion,waivesuchnotice.ThisissubjecttoprovisionsofparaNo.20."

Ontherequestofthedefendantclause6（givenabove）oftheconditionsoftheappointmentwasamended.Clause6asincorporatedintheletterdated16thJuly,1998isasunder:

"Clause6.

ThetotalcostofyourtrainingisestimatedatapproximatelyRs.15.0lakhs（RupeesFifteenLakhsonly）whichyouarerequiredtopaybacktothecompany.

Youwillberequiredtodepositasumof2.50lakhsbyDemandDraftwhichwillberetainedbythecompanyforaperiodof7years.Thesamewillberefundedwithoutinterestoncompletionofconfirmedserviceinthecompanyfor7years.

AsumofRs.33,000/-p.m.whichrepresentsF.D.A.payable@Rs.1,500/-perdaytoaFirstOfficerwillberecoveredfromyoursalaryoveraperiodof24monthstorecovertotalsumofRs.7.92lakhs.Youmayagreeforareductionforahigheramountincaseyoudesiretodoso.

ThisamountofRs.33,000/-isbasedon22daysofminimumflyingandonandadditionalflyingdonebyyouwewilladjustafurthersum@Rs.1,500/-perflightday,additionallytowardstrainingcosts.Thisamountwillnotberefundedintheeventofyourfailuretocompletesimulator/gr