Supreme Court Imposes ₹5 Lakh Costs on Hyundai’s Subsidiary for Abuse of Law

The Supreme Court recently canceled the appointment of an arbitrator in a case between Hyundai AutoEver India Pvt. Ltd. and its former assistant manager. The Court found that Hyundai’s late claim for ₹14.02 lakh under the employment contract was an afterthought, with no grounds to invoke Clause 19.

Hyundai had sought arbitration after the employee challenged his termination under the Payment of Wages Act and the Industrial Disputes Act. However, the Court ruled that such matters should be handled by statutory authorities, not through arbitration.

The Court also imposed ₹5 lakh in costs on Hyundai for misusing the legal process, ordering the company to pay the amount to the employee within three months.