CHRISTIAN LITERATURE SOCIETY Vs. S NATHANIEL

JUDGEMENT

(1.) THIS Second Appeal has been preferred against the judgment and decree of the learned IX Additional Judge, City Civil Court, Madras dated 31.7.1986 in A.S. No. 477 of 1985, reversing the judgment and decree in O.S. No. 2479 of 1983 dated 31.8.1984. The plaintiff is the appellant in that suit.

(2.) THE appellant/plaintiff filed the suit for recovery of possession of the "B" Schedule property in the plaint which is a portion of the "A" Schedule property and for recovery of Rs. 4125/- as damages and mesne profits on tthe allegation that the appellant is a Company incorporated under the Indian Companies Act, 1930. THE respondent/defendant was employed by the appellant as the Personnel Officer and he was permitted to occupy the "B" Schedule property free of rent. As the respondent was provided with a house, house rent allowance was stopped. Since the appellant required the suit property for the purpose of development, it called upon the defendant to vacate the suit property by letter dated 4.5.1982 and he was informed that he would be paid Rs. 500/- per mensem as house rent allowance. Though the respondent agreed to vacate the property, he failed to do so. On 9.5.1982, the respondent resigned from the plaintiff's Company and his resignation was accepted and from that day he ceased to be the employee of the plaintiff Company. As the respondent refused to vacate the suit property and continues in wrongful possession of the same in spite of being called upon to quit and deliver vacant possession, the licence given to him has been terminated. THE provisions of the Tamil Nadu Buildings (Lease and Rent Control) Act do not apply to the suit premises, as the plaintiff is a public religious and charitable institution and is exempted from the said Act as per G.O.Ms. No. 2000 (Home) Department, dated 16.8.1976. THE damages and mesne profits to which the appellant would be entitled to, are not less than Rs. 750/- per mensem and the same has been quantified as Rs. 4,125/-.

(3.) FROM the above ruling of the Supreme Court of India, it is clear that the provisions of Section 630 of the Companies Act applies not only to the serving employees of the Company but also it applies to the past employees. The learned counsel for the appellant further submitted even though the defendant/respondent had resigned from the Company and his resignation has been accepted and his services have been terminated on and from 10.5.1982, the defendant questioned the same in writ and other connected proceedings, where it was held that his services had not been terminated and he claimed reinstatement. However, the defendant had attained superannuation and at present, he is no more an employee of the Company.