01Facts
The applicant, an Association member and elected Regional Secretary, was removed from that office and from primary membership following misconduct proceedings under the Association’s bye-laws.
pp. 1–4He alleged that the inquiry was biased and that the removal violated natural justice.
pp. 1–4He sought, under Section 9 of the Arbitration and Conciliation Act, 1996, to stay the removal order pending constitution of an arbitral tribunal and final disposal of arbitration proceedings under Bye-law 39.
pp. 1–4The Association contended that the dispute was not arbitrable and that the applicant’s remedy was an internal appeal under the bye-laws.
pp. 1–4The Court considered the bye-laws governing the Executive Committee, removal of members and office-bearers, and arbitration.
pp. 5–602Issues
i.Whether the dispute arising from the applicant’s removal from the Association’s membership and elected post was referable to arbitration under Bye-law 39.
pp. 5–6ii.Whether the applicant could obtain interim relief under Section 9 of the Arbitration and Conciliation Act, 1996, where the removal dispute was not covered by the arbitration provision.
p. 603Law Applied
Section 9 of the Arbitration and Conciliation Act, 1996, was invoked as the basis for interim relief in aid of arbitration.
p. 1Under Bye-law 39, disputes concerning interpretation of the bye-laws, matters on which the bye-laws are silent, or actions of the Secretariat or office-bearers are first referred to the Executive Committee; only where a serious difference arises on the Committee’s decision on a matter of substantial importance may the dispute be referred to voluntary arbitration.
pp. 5–6Bye-law 74 empowers the Executive Committee to remove a member whose conduct it considers contrary or detrimental to the Association’s interests, with a right of appeal to the General Body; Bye-law 79 addresses removal of an Executive Committee member.
p. 5Provisions in the judgment · 1 · Linked ones open on LawLens
Arbitration and Conciliation Act, 1996 Section 9
04Reasoning
The Court construed Bye-law 39 as requiring a dispute to pass through the Executive Committee process and as permitting arbitration only in the specified circumstance of a serious difference over the Committee’s decision on a matter of substantial importance.
pp. 5–6It concluded that the bye-law did not provide for arbitration of a dispute challenging removal from membership or an elected post.
p. 6Because the applicant’s requested interim relief was sought in aid of arbitration of a dispute the Court found not arbitrable under the bye-laws, the Section 9 application was not maintainable.
p. 605Holding
The Court held that the applicant’s removal dispute was not referable to arbitration under Bye-law 39 and dismissed the Section 9 application as not maintainable.
p. 6There was no order as to costs.
p. 6Original Court PDF
G GanapathyvsState Bank of India Officers Association Chennai C
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