Judgment

MATHEW, J. :- This appeal by certificate is directed against the Decree of the High Court of Delhi dated November 25, l966, passed in Regular First Appeals No. 89-D of 1956 and No. 104-D of 1956, both arising from Suit No. 282 of 1954 instituted by the plaintiff-appellant for a declaration that he continued to be the General Manager of the Fire Insurance Company in question and that the purported termination of his services was inoperative, and claiming a sum of Rs. 37,352.30 from the defendant on account of his arrears of pay, etc., or in the alternative, for a sum of Rupees 1,63,820/- as money due to him by way of bonus, gratuity etc., as detailed in the plaint.

2. The respondent-Company had filed a suit against the appellant for the recovery of Rs. 1,10,000/- being Suit No. 306 of 1954 in which the Company was granted a decree for Rs. 5,759/9/6 with proportionate costs. First Appeal No. 88-D of 1956 before the High Court was the appeal by the Company against the rejection of the rest of its claim in Suit No. 306 of 1954. We are not concerned with that appeal. Regular First Appeal No. 89-D of 1956 was the Company s appeal against the award of decree for Rs. 73,936/15/9 passed in favour of the appellant. Regular First Appeal No. 104-D of 1956 was the appellant s appeal against the rejection of his other claims in his suit. The High Court dismissed First Appeals Nos. 88-D of 1956 and 104-D of 1956 but partially allowed First Appeal No. 89-D of 1956.

3. The appellant was appointed as the Secretary of the respondent Company on 16-10-1942. His pay was fixed at Rs. 1,000/- p.m. free of income-tax. Later on, he was promoted as the General Manager of the Company. On November 21, 1953, the appellant sent an application for leave to the Chairman of the Board of Directors but no reply was received by him. He thereafter sent another application for 8 months leave on the 16th of December, 1953. On December 17, 1953, the appellant received a telegram from the Chairman of the Board of Directors stating that the services of the appellant had been terminated by the Company and that he should stop attending the office. A registered letter to the same effect from the Chairman was also received by him.

4. The allegation of the appellant in the plaint was that his services had not been validly terminated by the respondent-Company and that he still continued as the General Manager of the Company and was entitled to recover the sum already mentioned from the respondent. In the alternative, the appellant claimed, among other things, 18 months salary as due to him on the basis that he was entitled to 18 months notice before terminating his services.

5. In the written statement, the respondent-Company contended that the Chairman validly terminated the services of the appellant on December 17, 1953 in pursuance to a resolution passed by the Board of Directors on the 16th, and that subsequently, that resolution and the action of the Chairman terminating the services had been confirmed by a meeting of the Board of Directors held on December 23, 1953, and, therefore, the services of the appellant were validly terminated. The respondent-Company also contended that the appellant was in no event entitled to 18 months notice as claimed by him but only to one month s notice and, therefore, he was entitled to get only one month s salary in lieu of notice under that head.

6. The trial court found that the meeting of the Board of Directors held on December 16, 1953 was valid, that the services of the appellant were validly terminated by telegram and letter of the Chairman dated December l7, 1953 addressed to the appellant, that even if it be assumed that the meeting of the Board of Directors held on December 16, 1953 was irregular, the resolution of the Board of Directors terminating the services of the appellant on the 16th and the action of the Chairman in actually terminating the services were ratified by the Board of Directors by its resolution of Dec