Asked March 18, 2017

Non payment of salary

  • 2 Answers

The case is related to Non-payment of Salary I used to work in Brainstorm Innovation and Research Pvt Ltd. The company is head quartered in Chennai and I used to work in Mumbai branch office. I had joined the company in May 2012. However, from December 2012, the owner of the company stopped paying our salaries citing that the company is going through financial crisis and they are looking for investor to pump in fresh investment. However, in February 2013, the owner of the company terminated all the employees citing that they have failed to find any investor and are closing the business. Through email and con-call the owner had promised that they will pay our pending dues, severance pay and provide us Form 16 for the TDS deducted. Since then, I have followed up with the promoters/ owners of the company numerous times. Initially they were responding to our emails and have kept on promising that they will release the payment soon. However, off late they have stopped responding to my emails. Kindly let me know how should I take legal action against the promoter/owner of the company. Under what premise, should I go ahead with the legal action and what is the chance of winning the case. I don't have enough funds to appoint a lawyer and fight a full-fledged case against the company. As an individual, can I send him a legal notice? It would be of great help if anyone can share sample legal notice for the same. Kindly let me know if sending a legal notice can help me in the recovering the pending dues? What if they dont even entertain my legal notice? I am thoroughly confused on how to go about the legal action. Kindly guide me. Regards,

Answers 2


It looks like your previous company is on the verge of bankruptcy based on your statement. The best way would be to deal in a professional manner to get the dues, if not let it go! Do not pick up quarrel as if your future employers get a background check done and the previous employer would cast bad remarks on you which will not keep you in good stead. Without money, you can't fight a case and that will add to your woes. Therefore, advise you to be patient and request your employer highlighting your personal situation.

Appreciate your feedback to my answer.




Agree Comment 0 Agrees over 4 years ago



Dear Sir/madam,

In our opinion, we don’t think that legal notice would serve your purpose or do any good because as a closing down company who has not paid the dues to its employees despite a promise made to them. They would be prepared and already expecting such notices by now, having full knowledge and the consequences of their wrongful act. Still, you can try your luck by serving them a legal notice via an advocate.

A legal notice is sent by a lawyer only. What you can send, is a normal notice to intimate the opposite party of the arisen cause of action and the consequences of it.

In a condition where one does not respond to the legal notice send to him/her within the stipulated time period provided to him/her by way of the same notice, the next remedy available or the next course of action is filing a suit in the court of law.

You can approach this problem by way of two alternate remedies :-

  • A civil suit can be filed in the district court of your area, claiming for the damages suffered by you due the breach of your job contract. At the perusal of Section 73 in The Indian Contract Act, 1872 which talks about providing Compensation for loss or damage caused by breach of contract.
  • Another civil suit can be filed parallel, with a claim for the Recovery of money (suit) under the Civil Procedure Code 1908.
  • A written application, in the form of filing a complaint with the Labour Commissioner of the area is a good remedy which can subsequently get converted into A suit under Section 33C in The Industrial Disputes Act, 1947 can also be filed in the court. this specific provision talks about - Recovery of money due from an employer.
  • A criminal case can also be levelled against him under Section 405 of The Indian Penal Code 1860 which deals with Criminal breach of trust.
  • Further, on the point of not having enough funds – a representative suit can be filed in the abovementioned court. In this, you need to take the pain of collecting all the other affected parties (as a result of shutting down of the company) and come up with one case – claiming for the same benefit under the same facts and circumstances. Doing this will not affect your individual paying capacities, instead would help you get your claim effectively. Plus, all the victims coming together will give you all the weightage you need, thereby creating an impact on the opponent as well as strengthening your legal claim in the matter.

    Incase you are facing any difficulty pursuing the above advice or want any help in filing the case. Please follow the link below

    Agree Comment 0 Agrees over 4 years ago

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