Court Upholds Trial Court's Decision; Finds No Contractual Obligation for Deferred Salary Repayment
In a significant ruling, the Delhi High Court dismissed an appeal filed by Anju Dhawan against M/s. Aithent Technologies Pvt. Ltd., upholding the decision of the Additional District Judge that rejected her claims for deferred salary, compensation bonus, and interest on terminal dues. The judgment was pronounced by Justice Neena Bansal Krishna on June 16, 2026.
The case revolved around Ms. Dhawan's claim for recovery of Rs.9,09,593/-, which included deferred salary and compensation bonus of Rs.3,10,500/-, terminal dues of Rs.4,05,498/-, and interest of Rs.1,93,595/-. Ms. Dhawan had contended that the company, where she served from October 1993 to July 2004, had restructured her salary during the financial year 2002-2003 due to financial difficulties, promising repayment of the deferred amount and a bonus. However, she alleged that these payments were never made.
The High Court, after reviewing the evidence, concluded that there was no contractual agreement obligating the respondent company to repay the deferred salary or to pay the compensation bonus. The letter dated April 1, 2002, which Ms. Dhawan signed, was pivotal in this decision. It described the salary modification as a restructuring and interim measure without any mention of deferred salary repayment.
Moreover, the court found that the company had already satisfied the claim for terminal dues, amounting to Rs.3,96,860/-, during the pendency of the suit, after statutory tax deductions. Ms. Dhawan's claims for interest on these dues and any additional unpaid amounts were deemed unsustainable due to a lack of evidence and her earlier refusal to accept a settlement offer.
The judgment emphasized that internal communications within the company, such as emails using the term "deferred salary," could not override the express terms of written agreements. The court also noted the absence of any formal board resolution or document supporting Ms. Dhawan's claims for salary deferment or bonus.
As the appeal failed to establish any enforceable obligation against M/s. Aithent Technologies Pvt. Ltd., the court dismissed it, affirming the trial court's decision and closing all pending applications related to the case.
Bottom line:-
Employment dispute regarding deferred salary, terminal dues, and interest claim - Plaintiff failed to establish a contractual obligation for repayment of deferred salary or payment of bonus; terminal dues satisfied during the pendency of the suit.
Statutory provision(s): Civil Procedure Code, 1908 Section 96
Anju Dhawan v. M/s. Aithent Technologies Pvt. Ltd., (Delhi) : Law Finder Doc id # 2925300
