Damages — Loss of reputation — Defamation — Pleadings Claim for damages on the ground of defamation, loss of goodwill, or mental agony must be supported by specific pleadings — Absence of material particulars under Order VI Rule 4 CPC is fatal — Bald assertions insufficient. [Para 7]

advocatemmmohan

Contract of Employment — Private employment — Termination — Remedies

Private employment is governed purely by contractual terms — Principles of public law and administrative law are inapplicable — Employment not protected under Article 12 of the Constitution.
[Paras 2, 4, 8(i)]

---

Termination Clause — Notice period — Damages

Where the employment contract provides termination by notice or salary in lieu thereof, even illegal termination entitles the employee only to salary for the notice period — No further damages permissible.
[Paras 2, 3, 6, 8(ii)]

---

Specific Relief Act, 1963 — Sections 14(1)(b), 14(1)(c), 41(e)

Contract of personal service under private employment cannot be specifically enforced — Determinable contracts are incapable of specific performance — Injunction or declaration indirectly enforcing such contracts is barred.
[Paras 5, 8(iii)]

---

Damages — Loss of reputation — Defamation — Pleadings

Claim for damages on the ground of defamation, loss of goodwill, or mental agony must be supported by specific pleadings — Absence of material particulars under Order VI Rule 4 CPC is fatal — Bald assertions insufficient.
[Para 7]

---

Mitigation of Damages — Contract Act, 1872 — Section 73

Employee alleging illegal termination must plead and prove steps taken to mitigate damages — Cannot sit idle and claim extended compensation.
[Paras 3–5 (as discussed through precedents)]

---

Relief — Scope

Even assuming termination to be illegal, relief is confined strictly to notice period salary with interest — Claims for continuation in service, superannuation benefits, loss of career prospects, or mental agony are not maintainable.
[Paras 6, 8]

---

II. ANALYSIS OF LAW

A. Nature of Private Employment

The Court reiterates that private employment stands on a completely different footing from public employment. Since the employer is neither the State nor an instrumentality under Article 12, constitutional protections relating to service law do not apply (Paras 2, 4).

B. Determinable Contract and Bar on Specific Performance

Relying upon Sections 14(1)(b) and 14(1)(c) of the Specific Relief Act, the Court holds that:

• Contracts of personal service are not enforceable;

• Determinable contracts cannot be specifically enforced;

• Declaratory and injunctive reliefs that effectively compel continuation of service are impermissible (Paras 5, 8(iii)).

C. Measure of Damages for Illegal Termination

Following the ratio of S.S. Shetty v. Bharat Nidhi Ltd., the Court affirms that:

• Even where termination is illegal, damages are confined to the notice period;

• Notice period reflects the parties’ understanding of reasonable time for alternative employment (Paras 3, 6, 8(ii)).

D. Defamation and Loss of Reputation — Pleading Deficiency

The Court subjects the claim for Rs.1 crore damages to strict scrutiny and finds:

• No pleadings identifying defamatory publication;

• No averments showing lowering of reputation in the eyes of right-thinking members of society;

• Non-compliance with Order VI Rule 4 CPC.
  Consequently, the claim is rejected in limine (Para 7).

E. Mental Agony and Distress

The Court holds that mental agony and distress cannot be independently compensated when the law itself restricts monetary relief to notice period salary (Para 7).

---

III. ANALYSIS OF FACTS

• Plaintiff was a private employee governed by an employment contract containing a three-month notice clause (Paras 2, 6).

• Defendant paid salary in lieu of notice, satisfying contractual obligation (Para 6).

• Suit sought declarations of illegality, Rs.1 crore damages, and consequential reliefs (Para 5).

• No factual foundation was laid for defamation or reputational loss (Para 7).

• Court confined relief strictly to three months’ salary with interest, dismissing all other claims (Paras 6, 8).

---

IV. FINAL HOLDING (AS PER JUDGMENT)

• Suit dismissed except to the limited extent of directing payment of three months’ salary with interest @ 9% p.a., escalating to 18% p.a. on default.

• No declaration of illegality, no damages for reputation, goodwill, or mental agony.

• Parties left to bear their own costs.
  [Paras 8–10]