RANBIR KUMAR GUGNEJA Vs. CONTINENTAL ENGINES LTD

JUDGEMENT

(1.) This is a suit for recovery of '63,65,103/-. The plaintiff was appointed as the Chief Executive Officer of defendants No. 1 to 4 vide appointment letter dated September 1, 2000, followed by a supplementary letter dated September 29, 2000. As per the terms and conditions of his appointment, the plaintiff was entitled for a compensation of '2.50Lacs per month in addition to 10% profit of each of the four companies as also the benefits of contribution to provident fund, accommodation, transportation, medical expenses, entertainment expenses, leave benefits, etc. The plaintiff continued in the employment of defendants No.1 to 4 w.e.f. 30th September 2000 till 31st March 2002.

(2.) It is alleged that after numerous requests from the plaintiff, requesting the defendants to clear his outstanding dues, the defendants sent an e-mail letter dated 4th October 2003 to him attaching therewith a statement of account, giving the amount which according to the defendants was payable to the plaintiff. Vide that statement of account, defendants agreed to pay a sum of '27,79,739/- towards overdue payment of salary, special allowances, contribution towards provident fund and reimbursement of expenses as also towards severance compensation consisting of salary, special allowance and contribution towards provident fund. Since there was no mention of entitlement of the plaintiff to 10% profit, in the plaintiff s statement of account, he never accepted that he was entitled to only to a sum of '27,79,839/-. The plaintiff received a sum of '22,65,154/-

(3.) The case of the plaintiff is that defendant No.1 M/s Continental Engines Ltd. made a profit of '2,11,31,856/- whereas defendant No.2 M/s L.P. Castings Pvt. Ltd. made profit of '4,86,563/- and, therefore, he is entitled to 10% of the above profits amounting to '21,61,842/- for his service tenure and a sum of '8,47,438/- towards profit of six months for the severance period (calculated proportionate to six months of profit of the year 2001-02). The plaintiff has also claimed a sum of '2,62,000/- from the defendants towards his salary, special allowance and contribution to provident fund for the month of March 2002. Thus, besides three principal sums viz. (i) '5,14,585/- being the unpaid amount in terms of the statement of account sent by defendants to the plaintiff (ii) '2,62,000/- towards salary, contribution to provident fund and supplementary allowance for the month of March 2002 and (iii) '30,09,280/- towards profit, the plaintiff has also claimed a sum of '25,79,238/- towards interest calculated at the rate of 18% per annum, as on 31st October 2004, thereby making a total sum of '63,65,103/-.