1. The challenge by means of this Regular First Appeal (RFA) filed under Section 96 of Code of Civil Procedure, 1908 (CPC) is to the impugned judgment of the trial Court dated 31.1.2004 decreeing the suit of the respondent/plaintiff/employee against the appellant/defendant/ employer, and by which decree the appellant/defendant was directed to pay the compensation amount of Rs. 10,87,294/- for unlawful termination of services. The amount of damages which were calculated were one month’s salary for each year of balance services till the date of retirement of the respondent/plaintiff, and which was found to be 26 years as the respondent/plaintiff was about 34 years of age when his services were terminated and the retirement age was 60 years.

2. The facts of the case are that the respondent/plaintiff was appointed as Business Officer with M/s Shri Ram Fibres Finance Ltd. in the year 1990. After completion of probation, the services of respondent were confirmed on 15.1.1991. The services of the appellant were subsequently governed by the terms and conditions of the appointment letter dated 21.4.1998 issued by the subsequent employer i.e. M/s. GE Capital Transportation Financial