Having heard the petitioner-in-person and Shri Amit Sibal, learned senior counsel appearing for the respondents, this Court unhesitatingly comes to the conclusion that there is no binding arbitration agreement between the petitioner and her employer so as to enable this Court to exercise its jurisdiction under Section 11(6) of the 1996 Act. The attempt of the petitioner to bring in the provision for arbitration contained in the "solutions programme" as a part of the terms of her employment with the respondent No.2 remains wholly unsubstantiated. Not only the employment contract signed by the petitioner does not contain any specific clause of arbitration or makes the provision for arbitration contained in the "solutions programme" applicable to her employment, the clause providing for exclusive jurisdiction of the courts in Bombay specifically negate the claim of the existence of an arbitration clause in the contract of employment of the petitioner. There is no specific incorporation of the provisions for arbitration contained in the "solutions programme" to the case of the petitioner by any other communication though a bald assertion to the said effect has been made by the petitioner in her pleadings which has remained unsubstantiated. Even on a hypothetical application of the "solutions programme" the provisions contained therein with regard to conduct of arbitration proceedings in terms with the Federal Arbitration Act and the National Rules for resolution of employment disputes of the American Arbitration Association would specifically exclude the provisions of Part I including Section 11(6)of the 1996 Act on the strength of the decisions of this Court in Bhatia International Vs. Bulk Trading S.A. & Anr.[1] followed in Videocon Industries Limited Vs. Union of India & Anr.[2] and Yograj Infrastructure Limited Vs. Ssang Yong Engineering and Construction Company Limited[3] which would be applicable to the issue having regard to the point of time when the question had arisen. Besides, under Section 7 of the 1996 Act the parties to an arbitration agreement must agree to submit their disputes to arbitration. What is contemplated under the "solutions programme" is a mere possibility of the employee seeking arbitration as opposed to an obligation to refer all disputes to arbitration. Also as held by this Court in K.K. Modi Vs. K.N. Modi & Ors.[4] an integral element of Section 7 of the 1996 Act is the agreement of the parties to be bound by the decision of the arbitrator. The same is not to be found in the "solutions programme" which leaves the employee with an option to accept or reject the decision of the arbitrator.
NON REPORTABLE
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NON REPORTABLE
Supreme Court of India
Payal Chawla Singh vs The Coca-Cola Co. & Anr on 10 April, 2015
Bench: Ranjan Gogoi
Citation:(2015)13 SCC699