Judgment

S. Saghir Ahmad, J.—Leave granted.

2. The appellant is a pharmaceutical company engaged in manufacturing and marketing of various pharmaceutical pro­ducts.

3. The respondent was appointed as a Medical Representative of the appellant with his headquarter at Ludhiana. Under the jobs assigned to the respondent, he was to visit the doctors, hospitals and chemists to promote the sale of medicines manufactured and marketed by the appellant. One of the duties of the respondent was to submit a daily report of the visits made by him specifying the persons visited and the samples or promotional materials distributed by him. In the daily report of 31st of August, 1989, the respondent indicated that he had visited one Dr. K.R. Singla at Ropar. He also indicated in his daily report that he had visited M/s. Singla Medicos, Ropar to whom he distributed various samples of the appellant’s products. It was later discovered by the appellant that Dr. Singla had already died on 7th of August, 1989, having been killed by the terrorists and that M/s Singla Medicos at Ropar had been closed from 8.8.1989 onwards.

4. Rule 14 of the Service Rules applicable to the Medical Representa­tives employed i