In a major setback to Kingfisher Airlines, Bombay High Court in its recent judgment in Kingfisher Airlines Limited v Capt Prithvi Malhotra & Ors held that an industrial dispute or a dispute relating to enforcement of a right or an obligation created under the Industrial Disputes Act is non-arbitrable, i.e. not capable of being adjudicated by the private forum of an arbitrator.
The respondent-pilots of the petitioner airline had filed applications in the Central Government Industrial Tribunal-cum-labour court in July 2012 seeking recovery of their unpaid wages since December 2011. The airline’s defence was that the pilots’ appointment letter stated that the CEO is the sole arbitrator of employer-employee disputes and therefore the labour court had no jurisdiction and should refer the dispute to the arbitrator.
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The update of court judgments is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.
