PERCY EDWARD WARNE Vs. THE OUCHTERLONY VALLEY ESTATE (1938) LTD.

JUDGEMENT

(1.) THIS is an appeal by one P.E. Warne, the plaintiff in O.S. No. 153 of 1949, on the file of the Subordinate Judge, Ootacamund, against the judgment and decree therein.

(2.) THE facts were briefly these: The plaintiff had brought the suit for recovering Rs. 64,844 -7 -9 as damages for his wrongful dismissal by the defendants, the Ouchterlony Valley Estates Ltd., with their registered office at Calicut. His case was this: The defendants were badly in need of the services of an experienced planter like him. As a result of negotiations between him and the defendants, he was entertained as the Manager of the New Hope Estates, under the defendants, as per the terms contained in Exhibit A -7 the defendant's letter dated 23rd August, 1947, accepted by the plaintiff by the letter, Exhibit B -10, dated 25th September, 1947. The terms of service, as per Exhibit A -7, were shortly these: The plaintiff was to be paid at Rs. 900 per mensem for a probationary period of six months. When the probationary period was satisfactorily completed, he was to be confirmed and paid at Rs. 950 per mensem for the first year, and at Rs. 1,000 per mensem for the second, third and fourth years, besides a clearness allowance of Rs. 350 per mensem. On confirmation, he was given the right to his share in the 5 per cent. of the net profits set apart for paying commission to the staff, the defendants' board to allocate the commission for each manager. The plaintiff was to be given free medical aid on the estate, and leave in India for one month, exclusive of the casual leave, and leave outside India for six months, within a period of four years, after confirmation, on full pay, and passage allowance at Bibby rates. He was to be given a cooly allowance to defray the cost of three coolies to serve under him. He was to contribute compulsorily Rs. 100 per month towards his provident fund, and the defendants were to contribute an equal amount. He was to be paid Rs. 100 per month to maintain a suitable horse for going round the estate and supervising. In case he kept a car, he was to be paid an extra allowance of Rs. 10 per month. He was not to undertake any outside work without the special sanction of the defendants' board. The contract of service could be terminated by giving three calendar months' notice in writing on either side.

(3.) THE plaintiff continued to discharge his service to the satisfaction of the defendants and drew his increments, as contemplated in Exhibit A -7, and was drawing Rs. 1,000 per month from 1st April, 1949. But his efficient services and improvement of the estate, and the satisfaction he gave to the employers created jealousy and ill -will in one Mr. J.H. Wilkes, the General Manager of the defendant -company, residing in an estate near the New Hope Estate. Mr. Wilkes sent confidential reports of a malicious and false nature against the plaintiff, and created animosity towards him on the part of the defendants. No charges were framed against him, nor was any explanation demanded from him about any of the charges made by Mr. Wilkes in his confidential reports. Suddenly, on 31st May, 1949, Messrs. Pierce Leslie & Go. Ltd., the Managing Agents and Secretaries of the defendant -company, purporting to act on behalf of the defendants, wrote a letter, Exhibit A -13, to the plaintiff, terminating his services as and from 30th June, 1949, as they were no longer required and enclosed a cheque for a miserable sum of Rs. 350 alleged to be in full settlement of his claim which was stated to amount only to the salary for three calendar months from 11th July, 1947 and dearness allowance, and the company's contribution to the provident fund for three months, in lieu of notice, deducting from the amount, so arrived at, Rs. 4,000, the balance due on the car loan, though this amount had not fallen due and could only be deducted at Rs. 200 per month as per the agreement between the parties. He was also asked to hand over charge of the estate to his successor who would arrive on or before 25th June, 1949, and to leave the rent free bungalow he had been given. He informed the defendants through his letter dated 13th June, 1949, Exhibit A -14, that he was returning the cheque for Rs. 350, as it could not be considered to be in full settlement of his claims against the defendant company, that he believed that there was a pre -arranged plot to get rid of him after making full use of his skill and services, and that he was entitled to full pay and allowances for the remaining period of thirty three months covered by the contract of service, and that, in any event, the deduction of Rs. 4000, the balance of the car allowance, was unwarranted, as it had not fallen due, and that he was also entitled to his commission, which, according to what he had been told by Mr. Thorne, before he was entertained in service, would amount to some Rs. 6000 per year, and could not in any case be less than Rs. 5,000 and that he was also entitled to the passage expenses of himself and his wile to England at Bibby rates, i.e., at Rs. 1,050 each, besides the provident fund contributions by the defendants for the remaining period out of the four years. He continued to stay on in the estate bungalow, but the defendant -company made it hot for him by fixing the rental value of the bungalow at Rs. 500 a month. Finally, therefore he vacated the bungalow on 6th October, 1949, having occupied it rent -free till then.