Employee who accused employer of unlawful termination loses case

In 2018, TTC News Channel had terminated employees after issuing them a notice that clearly stated that the organisation was in the midst of a financial crisis. The Channel did not have the funds to operate and had informed the employees that it was suspending operations. The notice also stated that if the Channel sprang back to life and became financially stable, it would hire back the terminated staff.

One of the employees, Mutturaj G.S, however, filed a petition saying that the Channel had terminated him without following due process of law.

The employee had filed an FIR under Sections 20, 406, 506, 149 of the Indian Penal Code. These Sections pertain to criminal breach of trust and cheating, which has not happened in this case at all.

The Karnataka High Court observed that an employee whose employment has been terminated cannot file a case against the employer / organisation accusing the firm of criminal breach of trust and cheating.

The Karnataka Court found that the notice issued by the organisation clearly stated that the Channel was facing a crisis due to repeated losses, and therefore, the Board of Directors had taken a decision to close down operations till further notice.

In fact, the Court said that the employee was trying to unnecessarily pressurise the employer and also wrongfully set a criminal law in motion.