Case Note & Summary
The plaintiff, Dr. K.D. Mehru, filed a summary suit under Order XXXVII of the Code of Civil Procedure, 1908, against M/s. Cosmos Brands Distributors Pvt. Ltd. for recovery of Rs. 36,94,425/- with interest at 18% per annum. The claim arose from an offer of appointment dated 6th February 2008, appointing the plaintiff as Chief Investment Officer for a period of five years. The plaintiff accepted the offer on 18th February 2008 and rendered services from 20th October 2008 to 27th October 2008, after which he was on sick leave. On 31st October 2008, upon resuming work, he was asked to hand over charge and a 'no dues certificate'. The plaintiff alleged termination without following clause 2(f) of the appointment letter and non-payment of remuneration and perks. He issued a legal notice on 5th December 2008 and a reminder on 7th March 2009, followed by a statutory notice under Sections 433(e) and 434 of the Companies Act, 1956. The defendant did not reply, leading to a winding-up petition which was admitted. The defendant appealed, and by consent, the Division Bench disposed of the appeals on 6th April 2011, directing the plaintiff to file a summary suit and the deposited amount of Rs. 37 lacs to be governed by the order on Summons for Judgment. The plaintiff took out the Summons for Judgment. The defendant filed an affidavit in reply, and the plaintiff filed a rejoinder. The court noted that the claim comprised six heads, including balance salary for August 2008 (Rs. 76,250/-), which the defendant admitted in the company petition. However, the defendant disputed other claims, including salary for September and October 2008, notice pay, leave encashment, medical reimbursement, and liquidated damages. The court found that the defendant had raised triable issues regarding the terms of employment, the validity of termination, and the quantum of claims. Consequently, the court granted unconditional leave to defend, directing the defendant to file a written statement within four weeks and the suit to be placed on the list of commercial causes.
Headnote
A) Civil Procedure - Summary Suit - Leave to Defend - Order XXXVII Rule 3 of Code of Civil Procedure, 1908 - Defendant sought unconditional leave to defend suit for recovery of salary and perks - Court held that disputes regarding terms of appointment, termination, and quantum of claims raised triable issues - Defendant granted unconditional leave to defend (Paras 1-10).
Issue of Consideration
Whether the defendant is entitled to unconditional leave to defend the summary suit on the ground that there are triable issues regarding the terms of employment, termination, and quantum of claims.
Final Decision
The court granted unconditional leave to the defendant to defend the suit. The defendant was directed to file a written statement within four weeks from the date of the order. The suit was directed to be placed on the list of commercial causes.
Law Points
- Summary suit under Order XXXVII CPC
- leave to defend
- triable issues
- employment contract
- termination
- liquidated damages
- interest
