Bangalore District Court
Subramaniam P V vs Gupta Power Infrastructure Limited on 13 March, 2024
1 O.S.No.2267/2023
KABC010090582023
IN THE COURT OF XLII ADDITIONAL CITY CIVIL AND
SESSIONS JUDGE, BENGALURU (CCH-43)
- : PRESENT :-
LAKSHMINARAYANA BHAT K.,
XLII Addl. City Civil & Sessions Judge,
Bengaluru City.
Dated this 13th day of March, 2024.
ORIGINAL SUIT NO.2267/2023
Plaintiff :
Sri.P.V.Subramaniam,
S/o.P.V.Venkataramanan, 61 Years,
R/o.No.C-303, HRC IBBANI, Opp:
VIBGYOR School, Arkavathi Layout,
Jakkur, Bengaluru-560 064.
[Sri.Sharath.M, Advocate]
/ VERSUS /
Defendants :
1. Gupta Power Infrastructure Limited, A
company incorporated and registered
2 O.S.No.2267/2023
under The Companies Act, bearing CIN:
U31300WB1961PLCO25104 Cuttack Road,
in front of Budheswari Temple,
Bhubaneswar, Odisha-751 006.
Represented by its Directors
Also at:
Gupta Power Infrastructure Limited, 363,
First Floor, 12th Cross, Dr.Rajkumar Road,
6th Block, Rajajinagar, Bengaluru-560 010.
Represented by its Directors.
Gupta Power Infrastructure Limited, EN
62, 7th Floor, Sector-V, Salt Lake City,
Kolkata, West Bengal-700 091.
Represented by its Directors.
[Defendant placed Exparte]
Date of institution of the
: 31.03.2023
suit
Nature of suit : Recovery of money
Date of commencement
: 16.11.2023
of evidence
Date on which the
: 13.03.2024
judgment is pronounced
Duration taken for Years Months Days
:
disposal 0 11 13
(Lakshminarayana Bhat K.),
XLII Addl. City Civil & Sessions,
Judge, Bengaluru.
3 O.S.No.2267/2023
JUDGMENT
The suit is filed by the plaintiff for recovery of money.
2. The short facts of the case of the plaintiff is that, the defendant is non-government company engaged in manufacturing of cable, conductors, wire rods, household wires, LED lightings etc., The plaintiff was offered role of Vice president- Sales and Marketing at the defendant regional office in Bengaluru. As per the appointment letter dated 02.01.2017 the plaintiff has accepted the offer and he was appointed as Vice president. He was offered annual compensation of Rs.51.00 Lakhs and he reported to the duty on 09.02.2017. Though on 01.04.2019, the plaintiff was informed through E- mail from his Senior Manager of the defendant company that the salary would be reconstructed with effect from 01.02.2019. The defendant company has drastically reduced the salary to Rs.25.50 Lakhs p.a. The balance Rs.25.50 lakhs per annum was deemed to be a performance linked incentive, based on 4 O.S.No.2267/2023 performance output. Even though the plaintiff has opposed the aforesaid unilateral restructuring, but he was forced to agree for the terms. The defendant with malafide intention withheld from paying entire salary and reduced gross salary as per the restructure scale. The plaintiff has lodged his protest against the restructure of salary and on account of the aforesaid act, he was under financial duress. During COVID-19 pandemic, the defendant also unilaterally reduced the salary of the plaintiff. The plaintiff was deprived of the performance pay of Rs.25.50 Lakhs which he is lawfully and legitimately entitled to claim from the defendant. Therefore, the plaintiff has claimed total amount of Rs.62,63,506/- with interest at 12% p.a. on account of unlawful deductions from the salary, performance related payments and reimbursement of monthly expenses. He has further sought for decree directing the defendant to deliver his relieving letter, experience letter/Certificate and all salary slips and costs of the suit.
5 O.S.No.2267/2023
3. After service of suit summons, the defendant company remained absent and it was placed exparte. In discharge of the burden to prove the plaint averments, the plaintiff was examined as PW1 and filed affidavit in lieu of his examination in chief. The documents produced by the plaintiff are marked at Ex.P.1 to P.24. Cross-examination of the PW1 was taken as Nil.
4. Heard arguments. The learned counsel for the plaintiff also filed synopsis of written arguments.
5. After annalysing the plaint averments, oral and documentary evidence placed on record and after hearing the arguments, the points that would arise for my consideration are:
(1) Whether the plaintiff proves that the defendant company has unlawfully deducted his salary from April 2020 to February 2021 as claimed in the suit ?6 O.S.No.2267/2023
(2) Whether plaintiff proves that the defendant company has failed to make payments of performance related pay from April 2019 ?
(3) What the plaintiff is entitled for recovery of the suit claim from the defendant ?
(4) What order or decree?
6. My findings on the above points are as under:-
Point No.1: In the affirmative ; Point No.2: In the affirmative ; Point No.3: In the affirmative ; Point No.4: As per final order, for the following:
REASONS
7. Point No.1 to 3 : - The defendant is a company having its registered office at Bhubaneswar, Odissa and also its office at Bengaluru. The specific case of the plaintiff is that, the defendant company has offered him post of Vice President cum sales marketing as per appointment letter dated 9.2.2017. As 7 O.S.No.2267/2023 per the specific recital in the appointment letter, the defendant company has agreed to pay annual compensation of Rs.51.00 Lakhs to the plaintiff and he was paid salary for the financial year 2017. His service was confirmed from 21.08.2017. The grievance of the plaintiff is that, from 01.04.2019, the defendant company has restructured the salary for Rs.25,50,000/- per annum and the balance amount of Rs.25,50,000/- p.a. was deemed to be performance linked incentive based on performance out put. The plaintiff also urged that during COVID-19 pandemic the defendant company has unlawfully reduced the salary. PW1 in his affidavit filed in lieu of examination in chief has deposed in consonance to the averments made in the plaint.
8. Among the documentary evidence placed on record by the plaintiff, Ex.P.1 is the appointment letter dated 09.02.2017. As per condition No.4 of the document, the defendant company has agreed to pay annual compensation of 8 O.S.No.2267/2023 Rs.51,00,000/- including provident fund and gratuity funds subject to income tax deductions. Ex.P.2 is the document produced by the plaintiff to show his service was confirmed by the defendant with effect from 21.08.2017.
9. Ex.P.5 is the E-mail correspondence dated 01.04.2019 addressed to the plaintiff by the defendant company wherein his annual compensation was reduced to 25.50 lakhs and the remaining amount of Rs.25.50 lakhs was considered as performance linked incentive. The plaintiff after receiving Ex.P.5 has sent Ex.P.6 letter to the defendant dated 25.12.2020 raising his grievances against reduction of his salary. The plaintiff has furnished his performance report updated up-to 31.10.2020 as per Ex.P.12 and Ex.P.13.
10. Ex.P.8 is the letter dated 01.02.2019 and as per the said letter, by mutual agreement the salary of the plaintiff has been reduced to Rs.25.50 Lakhs and company in its discretion 9 O.S.No.2267/2023 agreed to further compensate amount on performance basis. The payment of compensation of Rs.25,50,000/- per annum as performance linked incentives, based on the performance output by the plaintiff. The defendant company except the aforesaid condition No.4 of appointment letter dated 09.02.2017 admitted the remaining conditions were shown unchanged.
11. Ex.P.9 bank account extract of the plaintiff and the document show the salary from April 2019 to March 2021 which was paid in part as there was short fall of salary on those months. Ex.P-10 is the copy of Form No.16 regarding income tax deductions. Ex.P-11 is the statement relating to provident fund deductions from the salary of the plaintiff and contribution from the employer.
12. Ex.P.9 document further reveals that the salary of the plaintiff for March 2021 was not paid. But he has not produced account extract for the month of April 2021. Ex.P.16 10 O.S.No.2267/2023 is E-mail sent by the defendant dated 02.11.2021 to the plaintiff regarding full and final settlement. As per the document, the plaintiff has submitted resignation dated 22.02.2021 and 24.03.2021 is shown as the date of leaving. In the said document there is reference regarding payment of salary for the month of March 2021 Rs.1.26,601/-. Therefore, the pleadings of the plaintiff that there is no entry in the bank account extract regarding payment of salary for the month of March 2021 is incorrect.
13. The plaintiff in para No. 27 of the plaint has claimed Rs.11,90,719/- towards unlawful deduction made from the salary for the month of April 2020 to March 2021. The present suit is filed on 31.03.2023. Therefore, the claim of the plaintiff towards performance pay payable for the financial year 2019- 2020 is not barred by law of limitation. The arguments of the plaintiff that entitlement of performance pay for the financial year 2019-20 fell due and payable in September 2020 is 11 O.S.No.2267/2023 untenable. The said payment falls due on 01.04.2020. Therefore, the suit filed on 31.03.2023 regarding performance pay for the financial year 2019-20 from 01.04.2019 to 31.03.2020 is within the period of limitation.
14. The defendant company has not intimated in wiring the reasons for which the plaintiff is not eligible to claim performance linked incentive. Therefore, the plaintiff is entitled for the suit claim of Rs.62,63,506/- as claimed in the suit. The rate of interest on suit claim at 12% p.a. is also very reasonable. The evidence placed on record by the plaintiff remained unchallenged. Therefore, Points No.1 to 3 are answered in the affirmative.
15. Point No.4 : - In view of the foregoing findings on Points No.1 to 3, the suit of the plaintiff deserves to be decreed. Hence, this court proceeds to pass the following: 12 O.S.No.2267/2023
ORDER The suit of the plaintiff is decreed for Rs.62,63,506/- [sixty two lakhs sixty three thousand five hundred and six] with costs and the defendant is directed to make payment of the said amount with interest at 12% p.a from the date of suit till realization.
The defendant is also directed to hand over the plaintiff his relieving letter, experience letter and salary slips from 1.2.2019 to 31.3.2021.
Draw decree accordingly.
(Dictated to the Stenographer, computerized by her, the transcript corrected, signed and then pronounced by me, in open court on this the 13th day of March, 2024) (Lakshminarayana Bhat K.), XLII Addl. City Civil & Sessions Bengaluru.
*** 13 O.S.No.2267/2023 ANNEXURE
1. List of witnesses examined on behalf of the plaintiff :
P.W-1 : Sri.P.V.Subramaniam
2. List of documents exhibited on behalf of plaintiff :
Ex.P-1 : Appointment letter dated 09.02.2017 Ex.P-2 : Confirmation letter dated 21.08.2017 Ex.P-3 : Screen Shots of defendants.
Ex.P-4 : Certified copy of the offer letter dated 25.01.2017 Ex.P-5 : E-mail message dated 01.04.2020.
Ex.P-6 : E-mail message dated 25.12.2020.
Ex.P-7 : Letter dated 14.09.2020.
Ex.P-8 : Letter dated 01.02.2019 and E-mail
message.
Ex.P-9 : Bank statement from 01.04.2019 to
31.03.2021 of Axis Bank.
Ex.P-10 : Copies of Form No.16.
Ex.P-11 : Copy of EPF pass book.
Ex.P-12 : E-mail messages and annexures
08.11.2020
Ex.P-13 : E-mail messages and annexures
208.11.2020.
14 O.S.No.2267/2023
Ex.P-14 : Certificate U/s.65-B of Indian Evidence Act of Ex.P.12 and Ex.P.13.
Ex.P-15 : E-mail dated 31.03.2021.
Ex.P-16 : E-mail dated 02.11.2021.
Ex.P-17 : E-mail dated 10.01.2022.
Ex.P-18 : E-mail dated 28.02.2022.
Ex.P-19 : E-mail dated 06.07.2022.
Ex.P-20 : Legal notice dated 30.11.2022 Ex.P-21 : Postal receipts.
Ex.P-22 : Track consignment.
Ex.P-23 : E-mail of Ex.P.20 dated 6.12.2022. Ex.P-24 : Certificate U/s.65-B of Indian Evidence Act.
(Lakshminarayana Bhat K.), XLII Addl. City Civil & Sessions Bengaluru.
***
15 O.S.No.2267/2023
Judgment pronounced in open
Court [vide separate Judgment] :
ORDER
The suit of the plaintiff is decreed for Rs.62,63,506/- [sixty two lakhs sixty three thousand five hundred and six] with costs and the defendant is directed to make payment of the said amount with interest at 12% p.a from the date of suit till realization.
The defendant is also directed to hand over the plaintiff his relieving letter, experience letter and salary slips from 1.2.2019 to 31.3.2021.
Draw decree accordingly.
(Lakshminarayana Bhat K.), XLII Addl. City Civil & Sessions Judge, Bengaluru