JOHNSON STEPHEN Vs. MCEES TRADING

JUDGEMENT

(1.) The main question to be considered in this appeal is whether the order passed by the Commercial Court (Principal Sub Court) at Ernakulam on 22.12.2020 in CMA (Arb) No.766 of 2020, dismissing the application and declining the reliefs sought by the applicanter and correct. The applicant had sought for the following reliefs in CMA (Arb) No.766 of 2020:

(2.) The disputed facts of the case as disclosed from the pleadings of the parties are summarised hereinbelow:-

(3.) The 1st respondent Firm made remarkable progress in its business from the date of its inception itself and since the appellant had been actively involved in the marketing and promotion of the Firm and its products, he had been paid a monthly remuneration by the firm, since its inception. The shares in the profits accrued from the business carried out by the Firm were not received by the appellant and other partners but have been invested into the Firm itself based on a mutual arrangement among the partners for the well being and expansion of the Firm. The 1st respondent Firm had paid monthly remuneration to the appellant till middle of the year 2017 and to establish the factum, true copy of the bank statements of the appellant for the period from 2014 to 2017 are produced alongwith the Appeal Memorandum as Annexure A3. Thereafter it was proposed to the appellant by the 2nd respondent that prospective salary payable to him will be kept in abeyance for the time-being, in view of the ongoing projects involving huge investments. The proposal was accepted by the appellant and other partners for the best interest of the Firm. The 2nd respondent assured the appellant that salary arrears outstanding will be settled in due course. Thereafter, the appellant had developed a preliminary marketing wing within the Firm under his leadership during the years 2012 to 2017 and thereafter sub-delegated his works and activities to a Marketing Manager namely Mr.Rajesh Nair. The appellant on the request of the other partners then decided to focus exclusively on the expansion proposal of the Firm which includes merger and acquisition, overseas expansion and fresh investment prospects. Therefore, he had been actively engaged in several meetings and discussions to fructify the new agendas of the Firm.