As an Associate Director, you will almost certainly be categorized as exercising managerial and administrative functions. Consequently, statutory wrongful termination protections under the Industrial Disputes Act (which protect "workmen") are unavailable to you.
Forced resignation under threat of relief/termination constitutes forced consent (vitiated by coercion under Section 14 & 15 of the Indian Contract Act, 1872). A civil court can treat a forced resignation as an involuntary termination or breach of employment agreement.
Employers cannot easily fabricate or retroactively cite performance grounds if proper process was not followed.
If neither HR nor the severance agreement documented performance-based forfeiture at the time of exit, the doctrine of promissory estoppel and contract terms make it difficult for the company to defend retroactive performance claims in court or arbitration.
Severance paid for loss of employment does not automatically wipe out accrued, earned, or formulaic financial entitlements unless explicitly waived.
The company/formula-driven component of the MBO carries a stronger contractual claim than pure discretionary individual bonuses.
The statutory period to file a civil suit for breach of contract or recovery of money (withheld MBO/dues) is 3 years from the date the cause of action arose (i.e., when the payment was due or when the forced resignation occurred).
You may file a civil suit for recovery of unpaid MBO dues, damages for breach of contract, or illegal termination/coercion, depending on the state (e.g., Karnataka, Maharashtra, Delhi), senior employees can sometimes approach the appellate authority under the state’s Shops and Commercial Establishments Act for unpaid wages/dues, though jurisdiction over high-salaried managerial roles varies by state high court precedents.
Before filing suit, have an advocate issue a formal legal notice demanding payment of the MBO bonus based on contract terms, lack of due process (no appraisal), and formulaic entitlement.