F.A.C.T LTD. Vs. AJAYAKUMAR

JUDGEMENT

(1.) Appellant plaintiff is the Fertilisers and Chemicals Travancore Limited. Management trainees (technical) were selected by the appellant for absorption into service after two years of training. First respondent was one of the trainees selected. He accepted the selection and joined as trainee after executing Ext. A-3 bond on 1st September 1980, along with respondents 2 and 3, agreeing to undergo training for two years and then join service to continue there for a minimum period of five years. Further provision in Ext. A-3 is that in case of breach of conditions by the trainee, Rs. 10,000 is to be paid as reasonable compensation for the damages likely to be incurred by the FACT.. First respondent underwent training for five months and received the stipend of Rs. 4,000, at the rate of Rs. 800 per month. Then he unilaterally resigned and went, away. The suit for realisation of the amount agreed on Ext. A-3 as damages was dismissed on the ground that the appellant failed to plead and prove sustenance of damages and its quantum.

(2.) One of the contentions of the respondents was that the first respondent resigned on medical grounds, due to reasons of health peculiar to the locality and establishment and hence no liability is incurred. The Trial Court rightly rejected that contention as it is absolutely unsupported by any item of evidence. If so, the only question to be considered is whether dismissal of the suit for want of plea and proof of actual damages could stand.

(3.) Ext. A-3 says that the liquidated damages of Rs. 10,000 was fixed after considering the reasonable damages likely to be suffered by the appellant. When the first respondent sent Ext. A-4 resignation letter, he was called upon by Ext. A-5 on 23rd January 1981 to remit the amount. After many items of correspondence, Ext. A-8 suit notice was issued. In Ext. A-12 reply, the first respondent did not question the damage or reasonableness of the amount. He admitted his liability for the amount and wanted only reduction of amount by way of concession or leniency.