Dionisius Arjuna Dias vs Assistant Commissioner of Labour (Termination) and others – SC / APPEAL / 34 / 2011-2025

This case concerns an appeal regarding the personal liability of Directors of Cupid Industries for unpaid employee compensation. The Assistant Commissioner of Labour initiated proceedings after the company failed to pay Rs. 3,431,880 to 134 employees as ordered in 1995. The Directors were found guilty by the Magistrate’s Court in 1999 under the Termination of Employment Workmen (Special Provisions) Act (TEWA) and sentenced to default imprisonment. The Directors attempted to stay proceedings by filing a winding-up application, which was deemed a ‘frivolous action’ and a ‘sham’ by the High Court. Despite acknowledging liability in court in 2003, the Directors subsequently challenged the order, which was considered an abuse of process. The Supreme Court affirmed the judgments of the lower cou