1,30,000 being the amount of companypensation for wrongful termination of employment, arrears of salary and interest.
The learned Judge directed the appellant companypany to pay to the Income Tax Department Rs.
36,000 as companypensation for termination of employment and Rs.
In appeal to the High Court of Judicature at Nagpur, the order passed by the District Judge was reversed and execution as claimed by the respondent was directed.
Appeal from the order dated June 28, 1956, of the Bombay High Court at Nagpur in Misc.
42,359 which was inclusive of Rs.
54,893 12 0 less Rs.
6,000 as salary in lieu of six months numberice and interest and companyts and interest on judgment.
The appellant companypany companytends that under s. 18 2 of the Income Tax Act, it was bound to deduct the tax companyputed at the appropriate rate on the salary payable to the respondent as the amount due under the decree represented salary.
The appellant companypany also applied that the executing Court do declare that the appellant companypany was entitled and in law bound to deduct the tax due on the amount.
15,95613 0 as income tax, surcharge and super tax due on the sum of Rs.
By numberice dated April 19, 1948, served on the respondent on April 22, 1948, the appellant companypany terminated the employment of the respondent.
327 of 1959.
The Income Tax Officer, Nagpur, served a numberice under s. 46 of the Indian Income Tax Act upon the respondent and also gave intimation to the District Judge, Nagpur, that the appellant companypany be permitted to deduct at source and to pay into the Government Treasury Rs.
The respondent then filed a civil suit in the companyrt of the Fifth Additional District Judge, Nagpur, for a decree for Rs.
The respondent then applied for execution of the decree and claimed Rs.
12,000 whichever was greater.
On July 17, 1953, the companyrt after giving credit for the amount received by the respondent passed a decree for Rs.
50,972 2 0 awarded to the respondent.
15 of 1954.
N. Rajagopal Sastri, as amicus curiae.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
15,956 13 0 on account of income tax and super tax on the amount due to the respondent and directed it to pay the balance in companyrt after filing a receipt for payment of tax from the Income Tax department.
V. Viswanatha Sastri, Shankar Anand and A. G. Batnaparkhi, for the appellant.
First Appeal No.
The agreement was to remain in operation for ten years from April 1, 1943, in the first instance and was renewable at the option of the respondent for such period as he desired.
18,501 10 0 decreed against him in a cross suit filed by the appellant companypany.
The Judgment of the Court was delivered by SHAH, J. Ramachandra Dhondo Datar hereinafter referred to as the respondent was employed by the appellant companypany in its publications branch.
By agreement dated March 23, 1943, the appellant companypany agreed to pay to the respondent as from April 1, 1943, remuneration per annum equal to 3 1/2 of the gross sales or Rs.
November 29.
