PARASHARSINGH Vs. HINDUSTAN MANGANESE MINES, LTD.

JUDGEMENT

(1.) THIS first appeal is by the plaintiff and arises out of a suit filed by him for arrears of remuneration and damages for wrongful dismissal.

(2.) THE facts and circumstances leading upto this appeal may first be stated. Certain manganese mines situated near village Tirodi in district Balaghat of Madhya Pradesh and known as Tirodi Group and Mines were owned by one Shyamji Narainji of Nagpur - The plaintiff Parashar Singh was an employee of Shyamji Narainji and since 1948 was working as General Manager of the Manganese mines. The 1st defendant, Hindustan Manganese Mines Ltd., is a company which was registered at Nagpur on 17th February, 1953 and was formed with the object of purchasing from Shyamji Narainji the Tirodi Group of Mines and to carryon mining business. This company was at all relevant times managed by the 2nd defendant, Bhikabhai Purshottamdas and Sons Ltd., a managing agency company which was also registered at Nagpur on 17th February, 1953 and was formed for the management of the mining concerns of the 1st defendant company. The defendant No.3 Natwarlal was one of the promoters of 1st defendant company and at all relevant times was its Director as also the Managing Director of the 2nd defendant company. On 27th January, 1953, the promoters of the 1st defendant company entered into an agreement with Shyamji Narainji for the purchase of Tirodi Group of Mines. From 1st February, 1953 the mines were worked for the benefit of the promoters and their nominees. The State Government sanctioned the transfer of the mines in favour of the 1st defendant company some time in June 1953 and thereafter the mines were formally transferred in the company's favour. The plaintiff, as already stated, was the General Manager of the mines and his services were continued by the promoters and the 1st defendant company till 31st March, 1954.

(3.) ACCORDING to the plaintiff in addition to the above terms it was orally agreed that the plaintiff's services will not be terminated except for adverse circumstances resulting in stoppage of the mines or working of the mines on profitable basis or for any other just cause and in that eventuality he will be entitled to two month's prior notice and to his allowance at Rs. 1 -4 -0 per ton on the manganese ore railed and not at Re. 1 per ton on the ore railed.