Q: I joined a private limited company in 2001 as a junior accountant. In 2008, I was promoted to senior accountant. Since November 2010, I have not received my salary and other allowances as stated in the employment contract. My service was suddenly terminated in May 2011. My dues on account of arrear salary have not been paid. I have written to the company demanding justice, but the company says it is in financial distress and cannot pay my dues immediately. I am facing a severe financial crunch. What avenues are open to me in law to recover my dues? Can I file a criminal complaint against the company and its directors?
Sashi Menon
A: I have gone through the documents you have annexed to your letter. You have a legitimate money claim against the company. You may file a money suit against the company in the appropriate court having territorial and pecuniary jurisdiction in the matter depending on where the company carries on business and the amount of your claim. However, please note that a suit is generally a long drawn procedure and entails appreciable legal costs. It appears that the company has not disputed your dues but has pleaded immediate inability to pay. You may file a winding up petition against the company following the procedure prescribed in the Companies Act, 1956. This will create pressure on the company and it is likely to pay your lawful dues to avoid being wound up. However, I do not think that you should file a criminal complaint as that is unlikely to succeed in the facts and circumstances of your case
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