KGN Babu 04 February 2018

Criminal and civil suite on employee

I joined in a food company in 2003. The offer letter has been given by a CEO. The management has different other companies and they left this food division on CEO including cheque signing authority. After few years I got a job with a better package and resigned, the resignation is not accepted, convinced me by CEO and he inf me that other group employees getting low packges and if he gives more to me there will be a internal problem. So he asked me to involve me in company related business with my wife being partner, Recently he died and the management make a complaing against me that we cheated the company by doing the business as it is mentioned in the appointment not to do so.

My argument is that the died CEO given the appointment to me, and till he died no management people involved in the business they never met us not make a meeting. What ever the CEO said we are doing without any argument.

Now the management put a criminal case under so many sections and a civil suite. Is it really genuine that I made a crime?

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9 Replies

TGK REDDI 05 February 2018

What's mentioned in your Appointment Letter? Should your wife too not do business in the Company you're working in?

KGN Babu 05 February 2018

Dear Sir, Thanks for your concern. It was mentioned in the appointment letter that employee should not involve they did not mentioned about any others related to me.

Thanks again.

Sudhir Kumar, Advocate (Advocate) 13 February 2018

when you do illegal activity on verbal directions then you are liable.

Beg for mercy.

TGK REDDI 13 February 2018

I forgot to reply.

Civil or criminal actions can't be taken against you. Termination of your service can't be made on proper grounds. I mean it's possible your service may be terminated on frivolous grounds.

KGN Babu 13 February 2018

Thanks a lot for your advise. Its really helps me to gain the confidence levels to fight back

Sudhir Kumar, Advocate (Advocate) 13 February 2018

I am sorry to hold a different view.

You narrted that as per terms of contract you were not allowed personal trade in your own or spouce name.

You narrted you did it.

You narrated you did it on verbal permission that too who is not management.

SO you are open for action.

As fr as termination is concerned this ground is not frivulous.

TGK REDDI 13 February 2018

According to the second post of the Questioner, the Questioner's wife can involve herself in the business. No objection.

KGN Babu 13 February 2018

For a clarity in the point of discussion, In the appointment letter,

Under a clause " Restriction on other occupation"

You will not take any other trade, occupation, employment or business directly or indirectly wholly or partly, honorary or remunaretory without written permission of the company. If you indulge any of these activities your services are liable to terminated without any notice.

So as per the above clause only my wife's name was the business no where my name is included. Even though does it leads to a criminal case or civil suite?