Arbitration In IndiaTermination dispute can be referred to Arbitration if the Employment Contract has both Termination and Dispute Resolution clauses

Sreepad Bhiwaniwala v. Grant Thornton US Knowledge and Capability Center India Pvt. Ltd.

Court – Calcutta High Court

Citation – AP No. 62 of 2025

Date – 30.06.2025

The Hon’ble Calcutta High Court has held that a dispute regarding termination can be referred to Arbitration if the employment contract has both termination and dispute resolution clauses and it is not a case of termination simpliciter.

The Court held,

“Having considered the rival contentions of the parties, this Court, prima facie, finds that this is a case governed by the terms and conditions of employment, which contains a Dispute Resolution Clause. Parties bound themselves by the said clause. Adjudication of any dispute shall be done by a learned arbitrator. The petitioner has made out a case that, the termination was a fall out of the enquiry in respect of a complaint of sexual harassment. The recommendation of the enquiry committee also suggests that the employer was given the option to take steps. The ground showed for termination is other “business reasons”. This is not in my prima facie, view a termination simpliciter as urged by the Sehgal. The letter of termination contains a lot of compliances to be maintained by the petitioner for a considerable period, even after the termination. Thus in my view, the judgments which have been relied on by Mr. Sehgal will not be applicable at this stage. The learned arbitrator can rule on his own jurisdiction, which includes the arbitrability of the claim made by the petitioner. For the referral Court, the, prima facie, existence of the arbitration clause is sufficient to appoint an Arbitrator. The dispute is alive.”

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