Judgment

CHINNAPPA REDDY, J. :- Mohini Sugar Mills Limited is one of the Thapar Group of Companies. In the days when the Managing Agency System prevailed, Karam Chand Thapar and Bros. Private Limited were the Managing Agents of Mohini Sugar Mills Limited. The Managing Director of Karam Chand Thapar and Bros. Private Limited is Karam Chand Thapar. On January 1, 1984 A. B. Gujral was appointed as an Assistant in the office of Mohini Sugar Mills Limited by Karam Chand Thapar, for and on behalf of Karam Chand Thapar and Bros. Private Limited, for Mohini Sugar Mills Limited. A memorandum of agreement was signed by A. B. Gujral and Karam Chand Thapar on behalf of Karam Chand Thapar and Bros. Private Limited who were the Managing Agents of Mohini Sugar Mills Limited. The agreement stipulated that the Assistant would be employed at any of the offices of the company, wherever situate, as the company or its Managing Director might specify from time to time. It was stipulated that the Assistant would be entitled to "a rent free quarters or where quarters be not available the actual house rent not exceeding 15 per cent of his salary." It was also agreed by the Assistant that his services may be