This dispute between Mardec Berhad (hereinafter called 'the company') and Gurusamy a/l Rambayiah (hereinafter called 'the claimant') is over the dismissal of the claimant by the company w.e.f. 5 July 1991.

The claimant joined the company in September 1978 as a manager and was subsequently promoted as a senior manager.At the time of his dismissal the claimant was attached to the company's factory in Ulu Langat, Selangor as its factory manager.

On 28 March 1991 the company suspended the claimant from duty.About 2276 months later he was asked to attend an inquiry.The letter informing him of the inquiry stated, inter alia, as follows:

The Charges

1. That you being Senior Factory Manager in charge of the Ulu Langat Factory had been negligent, mismanaged, and/or not exercised due care in performing your duties resulting in a crop shortage of 879,375kg of scrap material amounting to $1,576,367.62 as at 27th March 1991.

2. that you being the Senior Factory Manager in charge of the Ulu Langat Factory had not complied with established company procedures by:

(a) not ensuring that test weighing of the weigh-bridge is done daily from 24th September 1990;

(b) not ensuring that proper records on stocks