CS(OS) 1363 of 2006 Page 1 of 16

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IN THE HIGH COURT OF DELHI AT NEW DELHI

Reserved on: 19.10.2015

Pronounced on: 23.12.2015

+

CS(OS) 1363/2006

SHRI G.S. PAUL

..... Plaintiff

Through:

Mr. G.D. Tehri, Advocate

versus

M/S ESYS INFORMATION TECHNOLOGY LTD EF+

..... Defendant

Through:

None

CORAM:

HON'BLE MR. JUSTICE NAJMI WAZIRI

NAJMI WAZIRI, J.

1. The plaintiff seeks recovery of Rs.2,12,80,000/- on account of

arrears of salary and damages etc. along with interest @ 15% per annum

till realization of the amount.

2. It is plaintiff’s case that he has been engaged by Defendant on

contract for a period of three years under the following terms:

“Employment Agreement

Country Manager / Chief Executive – India Operations

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CS(OS) 1363 of 2006 Page 2 of 16

1.

eSys Distribution Group, its subsidiaries and related

2.

3.

4.

annexure Á’ enclosed herewith.

5.







6.

7.

XXX

8.

XXX

9.

XXX

10.

XXX

11.

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CS(OS) 1363 of 2006 Page 3 of 16

30 days be given before implementing any such changes.

12.

organization.

13.

his rights or obligations under this Agreement.

14.

course of the business.

15.

Severability: The invalidity of any one or more of

invalidity.

16.

Waivers: The waiver by either party hereto of a

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CS(OS) 1363 of 2006 Page 4 of 16

of any subsequent breach or violation.

We are pleased that you have chooses eSys Distribution

For eSys Distribution Ltd.

September 12, 2002

G S Paul

3. Mr. G.D. Tehri, the learned counsel for the plaintiff, submits that

the plaintiff had assisted the defendant to set up a business of

Information Technology products and supplied computer hardware to

the defendant-company’s clients all over the country. The plaintiff was

initially engaged as Chief Executive Officer (CEO) of the defendant-

company in the year 2002 and because of his exemplary work, he was

promoted to the post of Managing Director (MD) on 01.07.2003 for a

period of three years ending on 30.6.2006. A resolution in this regard

dated 14.07.2003 (Ex. P-15) was passed in the Extra-Ordinary General

Meeting (EGM) held at the office of the company. It is, however,

claimed that the plaintiff had been discharging duties of both the MD as

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CS(OS) 1363 of 2006 Page 5 of 16

well as the CEO of the defendant. The terms of engagement also

envisaged payment to the plaintiff of 5% of net profits, before taxes.

4. It is claimed that on 12.05.2004, the plaintiff was directed to

attend the EGM on 12.05.2004, during which a resolution was passed

for termination of his services, albeit without any valid reason or

explanation. He was not afforded an opportunity to either speak or make

any representation against this termination of the service; that by a letter

of the same date (Ex. P-7) from Mr. Ved Prakash, Director of the

defendant-company, the plaintiff’s employment as MD was terminated.

It is claimed that till that date, the plaintiff had set up 20 branches of

over country and had developed a strong network of sales outlets. As a

result, the turnover of the company incresed to about Rs. 500 crores by

the time he was asked to leave the company. All this was accomplished

by the plaintiff in a short span of two and a half years.

5. The plaintiff has led evidence by way of affidavit to support his

case. During his cross examination, he has reiterated that his

Employment Agreement (Ex. P-1) included a payment of Rs.18 lakhs

per annum plus a bonus equivalent to 5% of the net profits of the

company before taxes, fr