No Farewell Bonus: When Resignation Turns into Legal Battle.
08 April 2024
Contract Law >> Corporate Law | Employment contract >> Corporate Law | Unpaid salary/bonus/gratuity >> Workplace/ Professional Related
Reddy Veerraju Chowdary, an associate general manager with a construction company in India, thought he had done everything right. After submitting a formal resignation and completing his notice period, Chowdary expected a smooth transition out of his role at Gayatri Projects Limited. However, things took an unexpected turn when the company allegedly withheld his relieving certificate, no-dues certificate, gratuity payment, and even arrears of salary. Faced with this impasse, Chowdary turned to the High Court, hoping a writ petition would resolve the issue. But the court's decision raised interesting questions about the appropriate legal recourse for such workplace disputes involving private companies.
Chowdary attempted to resolve the issue by filing a writ petition with the High Court. A writ petition is a legal instrument used to challenge the actions of the government or bodies performing public functions. However, the court dismissed the petition, citing the private nature of the company and the contractual aspect of the dispute.
The Court's Reasoning:
The High Court's decision hinged on two key factors:
1. Writ Petitions and Public Function: Writ petitions under Article 226 of the Indian Constitution are typically used in cases involving the government or organizations performing public duties. Since Gayatri Projects Limited is a private company, it doesn't fall under this category.
2. Contractual Dispute: The court determined that the disagreement between Chowdary and the company stemmed from a contractual issue related to his resignation and dues. Writ petitions are not the appropriate tool for resolving private contractual matters.
Conclusion:
While the court dismissed the writ petition, it did not prevent Chowdary from seeking alternative solutions. The court suggested he pursue other legal avenues, such as filing a civil lawsuit against the company to enforce his contractual rights and recover the owed dues.