JAMES J PONGRACE Vs. POWER MACHINES INDIA LTD

JUDGEMENT

(1.) BY this Order I shall dispose of an application under Order 37 rule 3 (5) CPC seeking leave to defend.

(2.) THE plaintiff has filed this Summary Suit under Order 37 CPC for recovery of rs. 4,36,95,361/ -. The plaintiff had entered into an employment agreement with defendant dated 23rd April, 2007. This employment agreement was for a period of 05 years. The employment agreement provided that plaintiff would receive USD 11000 p. m. as net salary. He shall receive USD 39,600/- p. a. as annual bonus in case of achievement of goal (as set by the company ). The plaintiff was also entitled to residential house rent subject to maximum of Rs. 1,15,000/- inclusive of electricity, water charges etc. , reimbursement of medical expenses to the tune of Rs. 4140/- p. m. , free use of company car including fuel and maintenance maximum upto Rs. 18,400/- p. m. and daily allowance in case of travel abroad. The services of the plaintiff were terminated after about two years of entering into the employment agreement. The plaintiff thus filed this suit claiming the entire salary and all allowances for remaining period of employment. A perusal of suit would show that he had claimed 35 months' salary, bonus money against unpaid vacation, medical allowance, unpaid business class fare plus excess baggage allowance for 35 months.

(3.) THE defendants have stated that suit itself was not maintainable under Order 37 CPC. The contract (employment agreement) between the plaintiff and defendants was a service contract which could not be specifically enforced. Though there was no provision in the contract for termination of employment agreement by either side, but the standing orders of the company provided for termination of the employment with one month's notice and the termination of employment of plaintiff was validly done vide notice dated 4th August, 2008 and thereafter notice salary etc. were paid to the plaintiff.