I don't think there is anything wrong here. Generally if you resign or leave you do not get the immediately salary in India. You receive it with what they call final settlement. It might be 30 to 90 days later.

But in either case the point here is that India does not have a working judiciary that can enforce contracts and hence people take law into their hand which is wrong even if the co-founder was at err.

Imagine these employees had to go to court to get their due. My uncle is fighting a similar case for last 32 years.

Check what happened to this mailman who was fired by postal department accusing him of stealing Rs 50 (80 cents). The case took 30 years and eventually reached Supreme Court.

http://timesofindia.indiatimes.com/india/After-29-years-man-...