Company not paying pending dues due to non availability of funds

961 votes

You should send them a legal notice dictating the norms of the contract, asking for the sum due along with the interest on the days for which the delay in payment has been made.
If this fails to resolve your issue and if your contract has an arbitration clause then you should call for arbitration of the dispute.
If there are no arbitration clause in your contract them after sending them a legal notice you should drag them into the competent court of jurisdiction (over here I am talking of a situation wherein your issue has not been resolved by way of legal notice).

Advocate Pulkit Prakash LawRato

652 votes

It cannot be disputed that non-payment of salary/terminal dues would give a right to an employee to bring an action against the employer, i.e., an actionable claim. Here we are concerned with a private employer. The Supreme Court has gone to the extent of holding that even salary payable to a Government servant would constitute debt and earlier thinking that a Government servant cannot sue for his salary, it being bounty of the Crown and not a contractual debt, is no more valid, pleasure doctrine would not apply in such a case and Government servant would be within its right to maintain a suit against Government for recovery of his earned salary/dues, which is debt payable to the employee.- Union of India v. Tulsiram Patel [1985] 3 SCC 399 para 52. Therefore, it can be concluded that the dues, which are recoverable by the petitioner from the respondent-company, are the 'debts'. As a corollary, the employee whose debts are not paid shall have to be treated as a 'creditor'. Therefore you may approach the appropriate forum i.e Labour tribunal etc., for redressal of your grievances . You may avail my services if you so desire.

Advocate Harish Chandra Yati LawRato

692 votes

Hi

will glad to help you. Your friend need to file a suit for recovery of money before the district court. Non availability of funds can not be a ground for not paying yours friend due. Send a notice and then file a case.

Advocate Akash Vajpai LawRato