SALTER INDIA PRIVATE LTD Vs. RAKESH NAYYAR

JUDGEMENT

(1.) THE appellant has preferred this appeal under Section 37 (2) (a) of the arbitration Act, 1996 against the order dated 10th May, 2008 of the Arbitral tribunal accepting the plea of the respondent under Section 16 of the Act; the arbitral Tribunal held the claims raised by the appellant not arbitrable.

(2.) THE parties hereto were parties to two agreements for employment of which the first is dated 1st January, 1999 and the other of re-employment dated 28th january, 2002. Both the agreements provide for arbitration as under:-"all disputes, controversies or differences which may arise between the parties hereto in relation to this agreement or for breach thereof which cannot be settled amicably by the parties shall be submitted for arbitration and finally settled under the Arbitration and Conciliation Act, 1996, by one or more arbitrator approved in accordance with the said Act. ".

(3.) UNDER the aforesaid agreements the respondent was appointed and re-appointed respectively as the Managing Director of the appellant company. The claims of appellant company against the respondent were for Rs. 3,19,24,987/- on account of the alleged acts of omission and commission of the respondent as the managing Director of the appellant company.