Kaar Technologies, a company based in Chennai, India has been sued by one of its former associate for a breach of contract and non payment of his dues.
It is reported that the associate was an employee of the company and opted to turn as a freelancer citing the anti-employee policies and attitude of the company. According to the sources, the company is habitual in late paying the salaries and the associate has given a notice of termination because it was a breach of contract to pay beyond the five day window (16th to 20th of the subsequent month), which is already late comparing other companies. But the company has reportedly terminated the contract which was already under the notice of termination by the associate. This breach of contract is challenged by the associate in the court of law.
It is also reported that the company is not accepting the notices from the Honorable High Court of Madras and soon will be facing a contempt of court case.
The details of the case can be found as below.
http://www.courtnic.nic.in/chennai/content.asp
By clicking Case No Search and by entering the following details.
Case Type: CIVIL SUITS
Case Number: 1009/ 2010
The background of the case is that the company has not paid his dues even after 8 months (as on today) after the submission of the client approved timesheets. Neither the company paid the notice pay as per the contract mutually signed by both the consultant and the company.
It is also noted that the company has not acknowledged the legal notices from the High Court of Chennai. Initially but later the company is not left with any other option but to accept the court notice and appoint an attorney as further refusal to accept the notice will lead to contempt of court case.
Last week when one of the application related to the case was heared in the court the company's banker has stated to the High Court of Chennai that the company does not have enough funds in the bank (which may make one reasonably believe that the company is bankrupt)
It is also reported that the company has reportedly declared a loss of undisclosed sum in its annual balance sheet for the fiscal year 2009-2010.