Case Note & Summary
The High Court dismissed an appeal by Appellant against a money decree favoring Respondent for an ex-gratia payment of Rs. 6,32,000/- -- The respondent had resigned and was offered the amount subject to conditions including not joining competing companies for eighteen months -- The appellant argued the offer was revoked due to lack of acceptance, but the court found the plaintiff's conduct in complying with conditions constituted acceptance under the Indian Contract Act, 1872 -- The trial court's decision was affirmed, holding the plaintiff entitled to the payment as per the offer letter
Headnote
The High Court of Karnataka at Bengaluru dismissed a Regular First Appeal filed under Section 96 of the Code of Civil Procedure, 1908 (CPC) against a money decree -- The appellant, M/s Wipro Enterprises Private Limited, challenged the trial court's judgment decreeing recovery of Rs. 6,32,000/- as ex-gratia payment to the respondent, Mr. Ratnesh Pandey -- The court held that the offer in the letter dated 18.09.2017 was not revoked under Section 6(2) of the Indian Contract Act, 1872 as the plaintiff's conduct constituted acceptance under Sections 7(2) and 8 -- The plaintiff's compliance with conditions during the non-solicitation period demonstrated acceptance by performance -- The trial court's decree was upheld, finding no perversity -- The appeal was dismissed with costs
Issue of Consideration
The Issue of consideration mentioned in the Judgement is whether the offer of ex-gratia payment stood revoked for want of acceptance and whether the plaintiff's conduct constituted acceptance under the Indian Contract Act, 1872
Final Decision
The High Court dismissed the appeal, upholding the trial court's money decree for Rs. 6,32,000/- in favor of the respondent, with costs
Law Points
- Acceptance of offer can be inferred from conduct under Sections 7(2) and 8 of the Indian Contract Act
- 1872
- Revocation of proposal under Section 6(2) of the Indian Contract Act
- 1872 requires non-acceptance within reasonable time
- Compliance with conditions in an offer letter constitutes acceptance by performance
- Ex-gratia payments are enforceable if conditions are met
- Non-communication of acceptance does not invalidate acceptance if conduct demonstrates compliance
Case Details
2026 LawText (KAR) (01) 43
Regular First Appeal No. 674 of 2025
Hon'ble Mr. Justice Sachin Shankar Magadum
Sri. Anirudh .R.S, Advocate for Smt. Sushma Nagraj, Advocate (Appellant), Sri. Shyam Harindra, Advocate for Sri. Raghuram Cadambi, Advocate (Respondent)
M/s Wipro Enterprises Private Limited
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Appeal against a money decree in a suit for recovery of ex-gratia payment under an employment contract
Remedy Sought
The appellant seeks to set aside the trial court's decree awarding Rs. 6,32,000/- to the respondent
Filing Reason
The appellant contended the offer was revoked due to lack of acceptance and non-compliance with conditions
Previous Decisions
The trial court partly decreed the suit, holding the plaintiff entitled to Rs. 6,32,000/- as per the letter dated 18.09.2017
Issues
Whether the offer stood revoked under Section 6(2) of the Indian Contract Act, 1872 for want of acceptance
Whether the plaintiff is disentitled due to non-communication of acceptance
Whether the plaintiff's conduct constituted acceptance under Sections 7(2) and 8 of the Indian Contract Act, 1872
Whether the trial court was justified in decreeing the suit
Whether the appeal warrants interference
Submissions/Arguments
The appellant argued the offer was revoked as acceptance was not communicated within reasonable time under Section 6(2) of the Indian Contract Act, 1872
The appellant contended the prescribed mode of acceptance under Section 7 was not complied with
The respondent argued acceptance was inferred from conduct under Sections 7(2) and 8 of the Indian Contract Act, 1872 as conditions were fulfilled
Ratio Decidendi
Acceptance of an offer can be inferred from conduct under Sections 7(2) and 8 of the Indian Contract Act, 1872, even without express communication, if the offeree complies with the conditions stipulated in the offer -- Non-communication does not revoke the offer under Section 6(2) if performance demonstrates acceptance
Judgment Excerpts
Held that the offer made by the defendant under the letter dated 18.09.2017, for want of acceptance, stood revoked under Section 6(2) of the Indian Contract Act, 1872
Held that the plaintiff, by conduct and performance of the conditions stipulated in the letter dated 18.09.2017, can be held to have accepted the offer within the meaning of Sections 7(2) and 8 of the Act
Procedural History
The plaintiff filed OS No. 9492/2019 for recovery of money -- The trial court passed a judgment and decree on 23.07.2024 partly decreeing the suit -- The defendant filed RFA No. 674 of 2025 under Section 96 of CPC -- The High Court heard the appeal and delivered judgment on 23.01.2026
Acts & Sections
- Indian Contract Act, 1872: Section 6(2), Section 7, Section 7(2), Section 8
- Code of Civil Procedure, 1908: Section 96
