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The court has exclusive jurisdiction in civil causes and matters relating to or connected with any labour, employment, trade unions, industrial relations and matters arising from workplace, the conditions of service, including health, safety, welfare of labour, employee, worker and matter incidental thereto or connected therewith.

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Just In: Industrial Court Dismisses Claim, Awards Counter-Claim of N7 Million In Favour of Chi Pharmaceuticals Co. Nig. Ltd


969 Wednesday 24th October 2018

 

Enugu --His Lordship, Hon. Justice I. G. Nweneka of the National Industrial Court of Nigeria, sitting in Enugu on Wednesday 24th October 2018 in a judgment dismissed suit filed by OBINNA EMECHETA (claimant) against CHI PHARMACEUTICALS CO. NIG. LTD (defendant) in its entirety for lacking merit and  ordered claimant to pay to the defendant the sum of N7, 697, 428.10 being the sum admitted owing and due to the Defendant.

 

This suit was commenced by a Complaint dated 28th September 2015, the Claimant claimed against the Defendant for The sum of N5, 046,197.24 being unpaid salaries between April 2015 to January 2018, N109, 699.94 per month from February 2018 till the Claimant is formally disengaged and General Damages of N100, 000,000

 

The Claimant was employed on 12th January 2009 as Medical Sales representative of the Defendant for Onitsha territory covering Anambra, Enugu, Ebonyi and Benue States. By the Claimant’s account, his relationship with the Defendant began to deteriorate in May 2013 when he received a consignment of drugs with three months expiry date.

His protestation was rebuffed and consequently he returned 200 packs of the drugs described as Humulin 70/30 10MLS and destroyed 200 packs but the Defendant debited his account with the 400 packs which was worth N880, 000. He claimed that the Defendant refused to pay his salary from April 2014 to January 2018 and accrued a salary arrears of N5, 046, 197.24. He denied alleged undertaking and liability to the Defendant for the sum of N12, 499,690.

 

The Defendant agrees that the Claimant was its Medical Sales representative for Onitsha territory but averred that the Claimant was paid his monthly salary up till February 2015. Thereafter, the Claimant cut off communication with his line Manager and abandoned his work. The Defendant denied that the drugs it delivered to the Claimant had three months expiry date. It stated that the Claimant acknowledged indebtedness for the sum of N7, 697, 428.10. It is the Defendant’s case that the Claimant did not attend the Cycle meeting of September 2015 which fact was denied by the Claimant. The Defendant counterclaimed against the Claimant for the sum of N12, 499,690 being value of drugs supplied to the Claimant which have not been paid for.

 

On 17th October 2018, learned Counsel for the Defendant, Miss Ewenwa, adopted the Defendant’s final written address dated 3rd September 2018 as her arguments in support of the defence and counterclaim. Learned Counsel to the Claimant, Mr. Eze, did not file a written address but relied on the Claimant’s evidence. The matter was consequently set down for judgment.

 

The Defendant raised three issues for determination, namely: whether the Claimant’s employment subsists and has not been terminated? Issue two is whether the Claimant is entitled to the reliefs claimed? Issue three, whether the Claimant is liable to account for and pay the sum of N12, 499,690 to the Defendant?

He argued that the Claimant ceased to perform his employment functions and stopped communicating with his line Manager in March 2015 leading the Defendant to consider the employment terminated.

It was further argued that by stopping payment of Claimant’s salary from March 2015, the Defendant accepted Claimant’s non-performance and absence as termination by him.

On the issue whether the Claimant is still an employee of the Defendant and consequently entitled to payment of salaries from April 2015 to date? The Court Presided by Hon. Justice I. G. Nweneka expressed thus;

 “By the Claimant’s admission in his statement on oath dated 28th May 2018, he did not place any order by January 2015 and had been redundant since 2014. This means that he has not sold any of the Defendant’s products since 2014. He filed this suit on 28th September 2015 and there is no evidence before me that he worked for the Defendant from September 2015 to today.”

“In this case, neither party gave notice nor paid salary in lieu of notice. From the evidence, the Claimant abandoned his duties and cut off communication with the Defendant; which in turn withheld his salaries since his line Manager could not clear him for payment of salary. In this circumstance, there is a constructive termination of the contract of employment by the Claimant.

“I therefore find and hold that, in these circumstances, the employer and employee relationship has ceased by the conduct of the parties. This being so, the Court will not direct payment of salary to an employee for days he has not worked.

“I adopt this reasoning for this case and hold that the Claimant, having not worked for the Defendant since March 2015, is not entitled to any salary for the period of his absence from duty.

 

“I find and hold that the sum of N12, 499, 690 has not been proved. However, there is evidence that the Claimant owes the sum of N7, 697, 428.10. This relief succeeds in part.

 

“In the final analysis, the main suit fails in its entirety and it is hereby dismissed. The counterclaim succeeds in part. For the avoidance of doubt, judgment is entered in favour of the Defendant against the Claimant. Judgment is entered in favour of the Defendant against the Claimant for the sum of N7, 697, 428.10 being the sum admitted in exhibit C as owing and due to the Defendant.

 

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