Delhi High Court

### Salary Restructuring Accepted Without Protest Bars Subsequent Claims for Deferred Wages Under Contract Law

Sanjay Kumar Nandecha vs M/S. Aithent Technologies Pvt. Ltd..

Delhi High CourtJUDGMENT: June 16, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Appellant, Sanjay Kumar Nandecha, was employed by the Respondent Company from 1993 to 2003

Source reference: para. 3

During the 2002-2003 financial year, due to financial difficulties, the Respondent reduced the Appellant’s salary by 30%

Source reference: para. 6

The Appellant alleged this was a "deferment" of salary to be repaid on 01.04.2003, along with a one-month salary bonus

Source reference: para. 5-7

The Respondent contended the reduction was a "restructuring" of remuneration necessitated by business circumstances, not a deferment

Source reference: para. 16

The Appellant accepted a letter dated 01.04.2002 (Ex. PW-1/D1) acknowledging the restructuring without protest

Source reference: para. 16, 40-41

After resigning in December 2003 and receiving full and final settlement, the Appellant filed a recovery suit for Rs. 5,52,737/- in 2006

Source reference: paras. 14, 31, 52

The Trial Court dismissed the suit on 20.04.2024

Source reference: para. 23
02

Issues

1. Whether the reduction in salary during the financial year 2002-2003 constituted a "deferment" creating a legally enforceable debt or a permanent "restructuring" of remuneration

Source reference: para. 19, 39

2. Whether the Appellant was entitled to a compensation bonus equivalent to one month's salary

Source reference: para. 19, 56

3. Whether oral evidence or internal emails could override the written terms of the restructuring letter (Ex. PW-1/D1) under the Indian Evidence Act

Source reference: para. 23, 41, 45
03

Law Applied

Sections 91 and 92 of the Indian Evidence Act, 1872, which exclude oral evidence that contradicts, varies, adds to, or subtracts from the terms of a written contract

Source reference: para. 23

Section 88-A of the Indian Evidence Act regarding the presumption of electronic messages, noting it only validates the integrity of transmission and authorship, not the truth of the contents as a proof of contract

Source reference: para. 43-44

Principle of vicarious liability and corporate authority, noting that internal communications by officers do not bind a company unless backed by a Board Resolution or formal contractual authority

Source reference: para. 26, 49
04

Reasoning

The Court found that the Letter dated 01.04.2002 (Ex. PW-1/D1), signed by the Appellant, explicitly used the term "re-structure" and contained no promise of future repayment or deferment

Source reference: para. 41

Under Sections 91 and 92 of the Evidence Act, the Appellant could not lead oral evidence to subvert these written terms

Source reference: para. 23

Regarding the Appellant’s reliance on internal emails (Ex. PW-2/1) using the word "deferred," the Court held these were internal communications and did not constitute a binding contract between the employer and employee

Source reference: para. 45

Appellant’s conduct—specifically signing a separation agreement in 2003 (Ex. PW-1/X) that was silent on arrears and waiting over two years after resignation to file the suit—undermined the claim that the debt was acknowledged or enforceable

Source reference: para. 51-53

The bonus claim was dismissed as a discretionary incentive rather than a contractual obligation

Source reference: para. 56
05

Holding

The High Court held that the reduction was a "restructuring" accepted by the Appellant and that he failed to prove a legally enforceable obligation for the Respondent to repay the reduced component or the bonus

The High Court dismissed the appeal, upheld the Trial Court's judgment, and disposed of all pending applications

Source reference: para. 59
Delhi High Court

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Sanjay Kumar NandechavsM/S. Aithent Technologies Pvt. Ltd..

Delhi High Court · June 16, 2026

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