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TMI Blog2024 (12) TMI 663X X X X Extracts X X X X X X X X Extracts X X X X ..... se notice on 04.09.2020, nor was it a part of the inquiry report. This is also not a part of the charge memo dated 25.11.2020. Crucially, the termination was not based on any such allegation as is evident from the termination order dated 21.01.2021 - It can be concluded that there is no dispute about violation of nondisclosure obligations and Section 11(6) petition, to this extent is non-existent. Nonpayment of wages and the legality and validity of the order of termination dated 21.01.2021 - HELD THAT:- The appellant approached the Authority under the PW Act much before the order of termination and the said authority would exercise jurisdiction under Section 15(2) of the PW Act to the exclusion of civil courts and these disputes are non-arbitrable - It was clearly intended to threaten the appellant for having approached the statutory authorities under the PW Act and the ID Act. There is no basis for invoking clause 19 of the agreement and demanding compensation of Rs. 14,02,822/- when that fact situation did not arise. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fer to Disciplinary committee to take final decision. Till the final decision, he should attend office regularly as per the roster. If he is having access from remote, those days should be recorded separately by his HOS. Based on the final decision of the disciplinary committee further action can be taken. 4. The inquiry led to issuance of a charge memo on 25.11.2020 for violating certain contractual clauses and these related to noncooperation and absenteeism. It is necessary to mention here itself that there is no reference to Clause 19 You will not give out to any one, by word of mouth or otherwise, particulars of HAEI s business or an administrative or organizational matter of a confidential nature which may be your privilege to know by virtue of you being HAEI s employee. of the appointment conditions relating to violation of the non-disclosure obligation. Ultimately, an order of termination was passed on 21.01.2021, the relevant portion of the said order of termination is important for our consideration and it is extracted hereinbelow for ready reference. Please refer our Show Cause Notices dated 4th Sep 2020, Emails dated (05th Aug, 03rd Sep, 07 Sep 2020 07 Jan 2021) and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the matter in any manner. I therefore have no hesitation in holding that the constitution of this Arbitral Tribunal is not in accordance with or in consonance with the provisions of Section 11 of the Arbitration and Conciliation Act as amended, particularly in the light of the ratio set out by the Hon'ble Supreme Court in Perkins Eastman Architects DPC another V/s HSCC (India) Ltd. In the light of the same, the arbitral proceedings between the parties above-named before this Tribunal is closed forthwith with liberty being granted to both the parties to work out their respective remedies in accordance with law. 8. Returning to the proceedings commenced before the Authority, we note that the respondent moved an application under Section 8 of the Act seeking reference of the dispute involved in the petition under Section 15(2) of the PW Act to arbitration. The Authority under PW Act dismissed the said application on 03.03.2022 holding that; In view of Section 23 of the Payment of Wages Act, arbitration agreement cannot stand in the way of the claimant in respect of illegally deducted wages under Payment of Wages Act. 9. There is yet another development. Questioning the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich is pending before the authority appointed under that section or of an appeal under section 17; or (b) has formed the subject of a direction under section 15 in favour of the plaintiff; or (c) has been adjudged, in any proceeding under section 15, not to be owed to the plaintiff; or (d) could have been recovered by an application under section 15. 15. Equally, legality of the order of termination dated 21.01.2021 is within the jurisdiction of Industrial Tribunal under Section 2(A) of the ID Act and it is important to mention that the jurisdiction of the Industrial Court is also to the exclusion of the civil courts and is not arbitrable. It is also important to note that remedies under these statutes were invoked much prior to the filing of petition under Section 11(6) by the respondent. In Vidya Drolia v. Durga Trading Corporation (2021) 2 SCC 1 , the principle of subject-matter arbitrability is enunciated as follows: 76. In view of the above discussion, we would like to propound a fourfold test for determining when the subjectmatter of a dispute in an arbitration agreement is not arbitrable: 76.1 (1) When cause of action and subject-matter of the dispute relates to actions in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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