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Salary, gratuity and other dues unpaid.

(Querist) 05 July 2013 This query is : Resolved 
I had been an employee of M/s. ____ Limited, previously ____ Limited from the year 23rd March 2006 till 31st August 2011. Served the company with loyalty, honesty and with complete dedication.

At the time I was relieved from the companie's services i owed to receive from the company a legitimate due of approximately INR 150,000 (Indian Rupees One Lakh Fifty Thousand), without any accrued interest on the quoted amount. Which is till date lying unpaid by the company.

Inspite of my communications (E-Mail, Mobile Phones)with the Managing Director Mr. _____ and other Directors, Mrs. ____ And Mr. ______, I have failed to receive my dues from the said company.

Respective of several verbal commitments from the Managing Director and the Directors they have failed to pay me my dues till time. In the mean while almost a span of 01 year 11 Months(from the date of relieved from the companies services) has already passed-by for lying in wait to receive the dues.

kindly give your expert advise. Also which court shall i file my case.
Raj Kumar Makkad (Expert) 05 July 2013
Engage the services of a local lawyer, serve a legal notice through him to your ex.employer and failing which file a suit for recovery.
Kumar Doab (Expert) 05 July 2013
Mr. Makkar has given valuable advise. Kindly follow it.

Legal notice by lawyer helps to drill sense into the heads.

Approach your lawyer with copies of all docs and proceed under the expert advise of your lawyer.

It has been almost 2 years and 2 years have gone waste. You have given a very long rope to this employer who probably want you to treat the amounts as a parting gift.


What is this establishment: Commercial or Industrial?
You were located in which state and HO/Redg. office of the establishment is located in which state?

Does this establishment has its certified standing orders and has it extended these to your designation?

It is not clear that you are covered in the definition of ‘Workman’ as in ID Act or ‘Employee’ as in Shops and Establishments Act?

If you are not covered the limitation period in your case may be 3 years.
Your lawyer may advise that forum for you to agitate is civil court.

The time for the payment of FNF dues is usual pay day.

Payment of wages Act (applicable to all employees drawing wages up to Rs.18000/pm)
2. Definitions.: 3*[(vi) "wages" means all remuneration………………..
(d) any sum which by reason of the termination of employment of the person employed
is payable under any law, contract or instrument which provides for the payment of such sum, whether with or without deductions, but does not provide for the time within which the payment is to be made;

Gratuity: Submit FormI as ap. Later you may have another burden of getting the delay condoned.

Although the company has defaulted as per Payment of Gratuity Act Section7 (2) (3)…

Section: 7: Determination of the amount of gratuity:
(1) A person who is eligible for payment of gratuity under this Act or any person authorised, in writing, to act on his behalf shall send a written application to the employer, within such time and in such form, as may be prescribed, for payment of such gratuity.
(2) As soon as gratuity becomes payable, the employer shall, whether an application referred to in sub-section (1) has been made or not, determine the amount of gratuity and give notice in writing to the person to whom the gratuity is payable and also to the controlling authority specifying the amount gratuity so determined.
(3) The employer shall arrange to pay the amount of gratuity within thirty days from the date it becomes payable to the person to whom the gratuity is payable.

If you can, place another call and record the promises, made to you.
If you can record visual/audio.

Submit a final representation addressed to the good offices of Appointing Authority, MD, Chairman and narrate all payable s by company to you (including Gratuity) and all representations made by you ( mention names, designation, dept, name of company, address, phone numbers, email id, date of call/email, brief minutes of discussion………..and verbal promise made on phone to supply the payment by dated……………) highlight that you have rendered unblemished services, and call upon good offices to supply you the payment by bank DD only thru redg. post only. You may mention that a postage prepaid ( as purchased from PO) self addressed envelope is enclosed for sending the DD by redg. post to you, so as to reach you in say……………..15 days.
Thus place all transactions on record and conclude that employer kept you entangled by its repeated promises............


Then submit legal notice, and pull them to court of law.

Seek your lawyers counsel to understand the merits in filing criminal complaint under sec. 406,420.......

and approaching the employer as creditor and treating the unpaid wages as debt on employer.

Bombay High Court
Balaram Abaji Patil vs Ragojiwalla (M.C.)

“Therefore 'wages' does not merely mean remuneration payable by the employer under the terms of the contract, express or implied; it includes any amount which the employer legally becomes liable to pay to the employee on fulfilment of the contract.
23:
In the case before us, once the employee has performed his part of the contract, the minimum wages due to him are, in our opinion, a debt due from the employer."

Valuable advice of learned experts is sought.


Raj Kumar Makkad (Expert) 05 July 2013
Doab has given many relevant judgments and further clarification over the issue. You ar expected to move ahead fast.
Rajendra K Goyal (Expert) 06 July 2013
Very well advised by the expert raj kumar makkad ji and Kumar Doab ji. Nothing more to advise.


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