Using Law to avoid payment is Abuse of Process, HC tells Wipro

The Karnataka High Court has pulled up Wipro Enterprises Pvt. Ltd. for refusing to release a promised ex gratia payment to a former employee, holding that the company’s stand amounted to an abuse of the judicial process. Upholding the civil court’s decree, the Court rejected attempts to deny contractual benefits on hyper-technical grounds.

The dispute arose after a former employee, who had served the company for nearly 12 years, resigned in 2017 and was assured an ex gratia sum of Rs.6.32 lakh, payable 18 months after cessation of employment, subject to a non-compete condition. Despite completion of the stipulated period and repeated follow-ups, the payment was not released, prompting the employee to approach the civil court. While the trial court ruled in his favour, Wipro carried the matter in appeal, arguing that the employee never formally accepted the cessation letter and therefore was not entitled to the promised amount.

Dismissing the appeal, Justice Sachin Shankar Magadum rejected Wipro’s attempt to invalidate its own commitment on technical grounds. The Court held that the company had acted upon the cessation letter and could not later deny its effect by insisting on formal acceptance. Observing that the phrase “return to us for records” could not be elevated to a condition precedent, the Court found no evidence of breach by the employee and described the employer’s stand as legally untenable.

Terming the litigation an “abuse of the process of law,” the High Court upheld the decree in favour of the employee and imposed Rs.50,000 as costs payable to him.

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