Delhi High Court - Orders
Icra Limited vs Naresh Takkar on 8 August, 2024
Author: Jasmeet Singh
Bench: Jasmeet Singh
$~53-54
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ O.M.P. (COMM) 233/2024
ICRA LIMITED .....Petitioner
Through: Mr. P. Billimoria, Sr. Adv with Mr.
Khowaja Siddiqui, Mr. Ashwini Kumar, Ms.
Rachita Sood, Mr. Tushar Bhatija, Mr. Suhail
Khan, Mr. Asheesh Bhandari, Ms. Manni Sethi,
Advs.
versus
NARESH TAKKAR .....Respondent
Through: Mr. Abhishek Malhotra, Ms. Raghavi
Shukla, Advs.
54
+ OMP (ENF.) (COMM.) 113/2024
NARESH TAKKAR .....Decree Holder
Through: Mr. Abhishek Malhotra, Ms. Raghavi
Shukla, Advs.
versus
ICRA LIMITED .....Judgement Debtor
Through: Mr. P. Billimoria, Sr. Adv with Mr.
Khowaja Siddiqui, Mr. Ashwini Kumar, Ms.
Rachita Sood, Mr. Tushar Bhatija, Mr. Suhail
Khan, Mr. Asheesh Bhandari, Ms. Manni Sethi,
Advs.
CORAM:
HON'BLE MR. JUSTICE JASMEET SINGH
ORDER
% 08.08.2024
I.A. 29911/2024-EX.
1. Exemption is granted subject to all just exceptions.
2. The petitioner shall file legible and clearer copies of exempted documents, compliant with practice rules before the next date of hearing.
3. The application is disposed of.
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 13/08/2024 at 21:12:52 O.M.P. (COMM) 233/2024
4. This is a petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 ("the Act") seeking to challenge the rectified Majority Award dated 30.01.2024, received by the petitioner on 11.02.2024.
5. The brief facts of the case are that the respondent was appointed as the MD and Group CEO of the petitioner-company. The respondent was engaged vide Appointment Letter dated 13.08.2015, which contained termination clause both with reason and without reason. The petitioner vide Termination Letter dated 29.08.2019 terminated the services of the respondent without any reason.
6. Admittedly, paragraphs 1 to 9 of the Termination Letter do not contain any reasons for termination. Paragraph 10 of the Termination Letter has been viewed by the Majority Tribunal as a termination with cause. The majority view was that since the termination was with cause, the respondent was required to be heard before termination. It, therefore, held the termination to be illegal. For the said reasons, the Majority Tribunal granted release of terminal benefits as well as salary and other perks qua the unexpired period of the contract.
7. Mr. Billimoria, learned senior counsel for the petitioner has argued that once the Arbitral Tribunal comes to a finding that the petitioner was entitled to terminate the employment of the respondent falls within the realm of private law and the termination was without any cause, it could not have granted the remuneration for the balance period of the employment contract. He states that the principles of public law of granting hearing cannot be imported in the realm of private law. In This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 13/08/2024 at 21:12:52 addition, learned senior counsel states that the Arbitral Tribunal failed to consider Expert Testimony of the petitioner-company, which established that the Internal Investigation was conducted in accordance with internationally-accepted practices.
8. Mr. Malhotra, learned counsel for the respondent states that the Court in a petition under Section 34 of the Act cannot look into the interpretation of the Arbitral Tribunal.
9. Prima facie, the dispute is a private dispute between an employer and an employee. The Appointment Letter clearly contemplates termination without cause. Paragraphs 1 to 9 of the Termination Letter seem to suggest that the petitioner has terminated the services without any cause. Paragraphs 9 and 10 of the Termination Letter only seem to suggest that the petitioner reserved the right to recover any claims which it may have in the future. The same to my mind does not amount to termination with a cause, and hence falls foul of the employment contract.
10. For the said reason, I am of the view that the issue requires consideration.
11. Issue notice. Mr. Malhotra, learned counsel accepts notice on behalf of the respondent, seeks and is granted 4 weeks to file a response.
12. Rejoinder, if any, be filed before the next date of hearing.
13. List on 08.01.2025.
I.A. 29910/2024-STAY
14. This is an application seeking stay of the rectified Majority Award dated 30.01.2024, received by the petitioner on 11.02.2024.
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 13/08/2024 at 21:12:53
15. For the reasons stated above, issue notice. Mr. Malhotra, learned counsel accepts notice on behalf of the respondent, seeks and is granted 4 weeks to file a response.
16. In the Majority Award, there are 2 components. Under POD No. 2, the respondent has been awarded a sum of Rs. 4,25,21,000/- towards past dues including bonus, incentives, and other outstanding payments due and payable to him. Under POD No. 4, the respondent has been awarded damages of Rs. 3,33,69,887/-. Under POD No. 3, the respondent has been awarded interest on both components.
17. I am of the view that the past dues including bonus, incentives and other outstanding payments need to be deposited by the petitioner before the Registrar General of this Court. The respondent will be entitled to withdraw the same subject to furnishing security to the satisfaction of the Registrar General of this Court.
18. As regards the claim of damages for wrongful termination, since the issue is under consideration, the same shall remain stayed till the next date of hearing.
19. List on 08.01.2025.
OMP (ENF.) (COMM.) 113/2024
20. In view of the order passed in O.M.P. (COMM) 233/2024, re-notify on 08.01.2025 along with O.M.P. (COMM) 233/2024.
JASMEET SINGH, J AUGUST 8, 2024 / (MS) Click here to check corrigendum, if any This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 13/08/2024 at 21:12:53