Non-Payment Of Outstanding Dues Towards Outstanding Salary Or Performance Bonus By Company Isn’t Criminal Breach Of Trust: Calcutta HC
The Calcutta High Court held that the non-payment of outstanding dues towards outstanding salary or performance bonus by the company does not amount to Criminal Breach of Trust.
The Court held thus in a criminal revisional application filed by the accused persons, seeking quashing of a complaint case.
A Single Bench of Justice Ajay Kumar Gupta observed, “… it is crystal clear that non-payment of outstanding dues towards Outstanding Salary or Performance Bonus by the company does not amount to Criminal breach of trust.”
Advocate Apalak Basu appeared for the petitioners while Advocate Manojit Bhattacharya appeared for the opposite parties.
In this case, the opposite party (complainant), being the ex-employee of a private company, filed a complaint before the Judicial Magistrate, alleging that he was employed by the Board of Directors of the said company on March 31, 2017 upon issuing an appointment letter. He joined as a Chief Executive Officer (CEO) and his salary was fixed by the company @ Rs. 2,50,000/- per month plus additional 2% as Performance Bonus of the annual sale volume after deducting the income tax. He worked there for the financial years 2017-2018 and 2018-2019.
According to the complainant, he was entitled to receive a total outstanding salary and performance bonus after deducting the income tax including penalty to the tune of Rs. 1,47,64,833/-. However, the company did not pay the same and hence, he sent a notice via email to the company but in vain. Resultantly, he lodged a complaint before the Police Station in October 2020 but no action was taken. Being aggrieved, approached the Judicial Magistrate who issued proceed against the accused persons. Challenging this, the accused persons approached the High Court.
The High Court in view of the facts and circumstances of the case, said, “… this Court finds there is no substance or ingredients to constitute offence punishable under Sections 420/406/34 of the Indian Penal Code, 1860. The Learned Trial Court issued process under Sections 406/34 of the Indian Penal Code, 1860 without considering the case of the complainant. He must have to prove at least prima facie case against the petitioners.”
The Court added that, a reading of the complaint petition in question does not disclose any specific role or act or particulars of the petitioners resulting in commission of the offences alleged.
“It is totally absurd and unbelievable that how complainant can claim Outstanding Salary and Performance Bonus of Rs. 1,47,64,833/- (Rupees One Crore Forty-Seven Lakh Sixty-Four Thousand Eight Hundred and Thirty-Three) only after working for a period of three long years. All payments have been made to the employee during his service period. There are no dues with the company”, it further noted.
The Court also remarked that, it is unimaginable to accept that an employee would have been worked for such long period without Salary and Performance Bonus.
“Consequently, the proceeding arising out of a Complaint Case No. 180 of 2020 filed under Sections 420/406/34 of the Indian Penal Code, 1860 by the complainant is hereby quashed insofar as the petitioners are concerned and issuance of summons thereof upon the petitioners are also, thus, set aside”, it ordered.
Accordingly, the High Court allowed the revisional application and quashed the case against the accused persons.
Cause Title- Dasrathbhai Narsangbhai Chaudhary @ Dasrath Chaudhary & Another v. The State of West Bengal & Another
Appearance:
Petitioners: Advocates Apalak Basu and Debayan Ghosh.
Opposite Parties: Advocates Manojit Bhattacharya and Sumitra Bhattacharya.
