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2025 Supreme(Online)(Mad) 60957
IN THE HIGH COURT OF JUDICATURE AT MADRAS
N. Anand Venkatesh, J
Southern Asia Division of Seventh Day Adventists (SUD) – Appellant
Versus
Pastor Sam Sudhakar – Respondent
Arb O.P No. 82 of 2023
For the Appellants/Petitioners: Mr.Godson Swaminath for M/s.ISSAC Chambers
For the Respondents: Mr.Abdul Mubeen, Mr.K.Ezhumalai
Claims under arbitration can be barred by limitation, and arbitrators must adhere to established laws regarding claim validity; findings deviating from substantive law can be deemed perverse.
Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 34(2) - Challenge to Arbitral Award - Award set aside on grounds of limitation and patent illegality; claim barred as per Limitation Act; historical context and obligations under agreement dismissed by the arbitrator as technicalities - Respondent's claims deemed perverse as based on orchestrated litigation to delay elections and sustain administrative position. (Paras 14, 30, 32)
Facts of the case:
Petitioners, representing a religious denomination, entered into an agreement with the respondent regarding administrative roles and elections within the organization. Disputes arose after the respondent refused employment and questioned election proceedings.
Findings of Court:
The court found that the respondent's claims concerning employment and other benefits were barred by the Limitation Act and ruled the Arbitrator's findings were perverse and illegal.
Issues: The main issues addressed were whether the claims were arbitrable under the agreement and the applicability of limitation to the respondent's claims.
Ratio Decidendi: The court asserted that the respondent's delay in raising claims, after failing to assume agreed responsibilities, rendered the claims barred by limitation; additionally, the Arbitrator's failure to address the substantive law of limitation was deemed perverse.
Result: Award set aside and petition allowed, imposing costs on the respondent.
| Table of Content |
|---|
| 1. establishment of agreements and roles. (Para 2 , 3 , 4 , 5 , 6 , 7) |
| 2. claims made by respondent. (Para 8 , 9) |
| 3. issues framed by arbitrator. (Para 10 , 12) |
| 4. arbitrability of the claims. (Para 14) |
| 5. claim barred by limitation. (Para 22 , 29 , 32) |
| 6. nature of the dispute as ecclesiastical. (Para 23 , 24) |
| 7. award set aside by court. (Para 33) |
ORDER
This petition has been filed under Section 34 of the Arbitration and Conciliation Act, 1996 (for the sake of brevity, hereinafter referred to as ' the Act') challenging the Arbitral Award dated 10.02.2022, passed by the sole Arbitrator.
2.The case of the petitioners is that petitioners are the denominational unit of Christianity having its constituent units across the globe. One such unit is based in Tamilnadu having its headquarters at Trichy. The said unit functions under the South East India Union, which is controlled by the Southern Asia Division of the Church.
3.An Agreement dated 13.03.2014 was entered into between the former President of the Church for resolution of differences and litigation in order to end the confusion that had stalled the elections and for proper administration of the Church.
4.An Agreement dated 13.03.2014 was also entered into by the petitioners with the respondent. As per this Agreement, the respondent was expected to convene a meeting of the eligible members of the Executive Committee and to make arrangements for conducting the election. The respondent agreed not to seek for any re-election or to hold any administrative office. Instead, the petitioners agreed to provide a role suitable to the respondent considering his experience and training by fixing a salary. The respondent was expected to carry out only the essential functions of office of the President and the Agreement basically contemplated transitioning of the respondent from the administration to a regular position by taking into account his experience and training.
5.The further case of the petitioners is that in line with the said Agreement, the respondent was also provided with an appointment as Marketing Manager in one of the publishing Company functioning under the Church on 27.06.2014. However, the respondent did not take up the employment and he was continuing to hold the post of an Administrator. The elections were also not conducted and the elections were stalled due to various litigations orchestrated by the respondent and his brother. Ultimately, due to the intervention of the Apex Court, the election process was able to be completed only in the year 2018.
6.The respondent through a notice dated 25.09.2019, informed the petitioners that the election has already been conducted as per the Agreement and that the appointment has not been provided to the respondent and the respondent has also incurred various expenses towards Court cases. Since the dispute has not been resolved, the respondent issued this notice for referring the dispute for arbitration.
7.A petition was filed before this Court in O.P.No.597 of 2020 by the respondent and by an order dated 10.02.2021, this Court appointed a sole Arbitrator.
8.The respondent filed a claim petition and made the following claims:
[a] direct the respondents to allocate a gainful employment to the claimants experience with due consideration of possible promotions and hike in the salary range retrospectively from 29.05.2014, the date of election conducted as per the agreement.
[b] direct the respondents to pay all the benefits and all other perks and allowances admissible to claimant as per the Policies of the Registered Company of SERVSDA from April 2014 to the date of award and paid with the arrears duly calculated for the above said period.
[c] direct the respondents to calculate and credit with interest, the dues recovered/recoverable towards Provident Fund Contribution into PF account of the Claimant.
[d] direct the respondents to pay a sum of Rs.4,50,000/- towards extra Ordinary Medical Expenses together with interest at the rate o
