Dushyant Janbandhu Vs Hyundai Autoever India Pvt. Ltd. (Supreme Court of India)
Supreme Court held that petition under section 11(6) of the Arbitration and Conciliation Act, 1996 is not maintainable since disputed that are related to non-payment of wages and legality and propriety of termination are non-arbitrable.
Facts- Questioning the appointment of an arbitrator by the High Court of Madras under Section 11(6) of the Arbitration and Conciliation Act, 1996, by the order impugned before us, the appellant has filed this appeal on the ground that the dispute with the respondent-employer, M/S Hyundai AutoEver India Pvt. Ltd. is governed by statute under the Payment of Wages Act, 1936 and the Industrial Disputes Act, 1947.
Conclusion- Held that the Section 11(6) petition has two facets. The first relates to disputes that were anyway pending before the statutory authorities, and they related to non-payment of wages and legality and propriety of termination which are non-arbitrable. The second facet relates to the alleged violation of clause 19 relating to nondisclosure obligation, which was not raised in the show cause notice, inquiry report, chargesheet and termination order and as such is non-existent. In view of the above, we allow the Civil Appeal and set-aside the judgment and the order passed by the High Court and dismiss the petition under Section 11(6) filed by the respondent under the Arbitration and Conciliation Act.
