• Company is demanding bond money

Hello,
I had joined my company in October 2017.
While joining the company I had signed a bond of service for 2 years or Rs. 2Lakh payment.
While serving the company they put me in a module which i was not willing to work in. I conveyed this to upper management but there was no response from them since i was just a Graduate and they have 1000s of graduates just like me. 
While already working in a field i did not wish to work in, they started the process of relocating me to Delhi without any prior notice or discussion. 
After telling them that i do not wish to go to Delhi, I got a call from upper management saying that if I do not apply for a project, U will be terminated from the company. I have the call recording as a proof. 
After Experiencing all of this I decided and left the company this august, as they were never going to put me in the module that i wanted to work in and in future i will be forced again to relocate to places i do not 
wish to go to without any prior notice.

Now they are demanding 2Lakhs and said a legal notice will be sent if I fail to deposit momey in 10 days, I feel like my 8 months have been wasted as again if i go to the module i want to work in I will have 
to start as a fresher.
I Request a guidance on what should I do as i do not wish to pay them the amount.
Asked 7 years ago in Business Law

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11 Answers

if any legal notice is issued reply to legal notice

2) mention that you were forced to leave the organisation as company was transferring you to delhi without your consent

3) you were at time of employment specifically told that you would be posted in Mumbai only

4) further company has not spent any money on your training and hence no money is due and payable by you

Ajay Sethi
Advocate, Mumbai
99891 Answers
8153 Consultations

Hello,

Let them send a legal notice, you tender a reply to the same.

Most of the companies do not initiate legal action after the legal notice.

Also, was there any arbitration clause in your agreement?

Regards

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

did you read the terms and conditions of the service bond you signed with the company?

is it possible for you to share the same here so that its terms can be studied for a better advice

Yusuf Rampurawala
Advocate, Mumbai
7905 Answers
79 Consultations

Dear Client,

Don`t agree that your resigned, reply them that you was offered different work at the time of interview and now management is forcing to work in module not disclosed to you.

And forcing to work in inhuman condition and undue management pressure.

You are still willing to work but in the same field in which you have applied. This way at least bond violation will not operate.

Yogendra Singh Rajawat
Advocate, Jaipur
23085 Answers
31 Consultations

Dear,

You are in trouble because you signed bond with the company.

If in offer letter and in bond conditions, any condition is written in

your favor then you will get success in your case.

Otherwise you have to work in this company.

Tarun Agarwal
Advocate, Jaipur
768 Answers
3 Consultations

Sir first of fall does your appointment letter prescribes the module you will be given on joining the work??

Further is your job transferable in meaning of the appointment letter??

See the company can send you notice demanding for the bond amount and can further file a civil suit claiming damages. In case they sent you notice you can reply same that you were not given module as promised on appointment and further transferred without notice.

In case they go for civil suit then the same has to be contested the company has to establish real damages before the court, and you have to contest the suit.

Further would advice you to settle the matter with company if they are ready to settle for a less amount like a months salary.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

They can't enforce this bond against you. This bond is hit by section 27 of the Indian contract act.

At any time you receive a legal notice, send a reply to the same through a lawyer.

There's nothing to worry.

Let me know if I can be of any assistance.

Vibhanshu Srivastava
Advocate, Lucknow
9763 Answers
323 Consultations

Contracts in restraint of trade are violative of the Indian Contract Act and are void ab initio. Any service bond agreement is not an enforceable contract.

The modalities of your signing the agreement will not make a difference as the company cannot possibly have the agreement enforced by Court.

Citation

Shri Vishal Gupta,

S/o Shri Trilok Chand Gupta,

R/o C­50, Rohit Kunj,

Pitampura,

Delhi­110034.

...............Petitioner

Versus

1 M/s BLB LIMITED.

4764/23­A, ANSARI ROAD,

DARYA GANJ,

NEW DELHI­110002.

2 SHRI ANIL K. CHAUHAN

ADVOCATE

SOLE ARBITRATOR,

K­130­A, TIS HAZARI COURTS,

DELHI­110054

................. Respondent

Mohammed Mujeeb
Advocate, Hyderabad
19350 Answers
32 Consultations

You joined the organisation in October 2017 and signed a contract to work for 2 years. The contractual obligations rank sacrosanct. Since you have resigned within the lock-in period the employer can seek liquidate damages from you. If you refuse to pay the damages then a suit for recovery of money with interest and litigation cost can be filed by the employer against you. You are bound to pay the liquidated damages.

Ashish Davessar
Advocate, Jaipur
30840 Answers
981 Consultations

This is my response to you:

1. Send a formal reply regarding the mental and psychological harassment by staff, colleagues and you supervisors and you are claiming that compensation from them;

2. Ask the HR to take some disciplinary action against your seniors for the derogatory and defamatory statements made against you and a preliminary enquiry is made against them;

3. The roles that have been changed for you without giving advance written notice is in itself unfair practice;

4. According to harassment policy, it is wrong for your supervisor to make inaccurate and false allegations and as per the principles laid down in the policy no employee should face bullying and workplace harassment;

5. Therefore tell them that a prominent role i.e. the post promised to you, which does justice to your years of experience and qualification was not given to you and that amounts to fraud;

6. The second last step is to send a reply to the legal notice through a lawyer on his/her letter head;

7. If they harass you more file a complaint to the labour court.

Gowaal Padavi
Advocate, Mumbai
1919 Answers
5 Consultations

If you have signed the employment offer letter then you are bound by the conditions contained in the offer letter.

What was the reason that you refused to accept to work in a place where you are told to do it, is it a violation of the condition of the offer letter?

The first thing to be kept in mind while trying to understand if the bond is valid is ascertaining that the bond is a valid contract under the Indian Contract Act, 1872 i.e. it must be an agreement enforceable by law.

Such employment agreements with the negative covenant is valid and legally enforceable if the parties agree with their free consent i.e. without force, coercion, undue influence, misrepresentation and mistake. ..

. The employment bond will not be enforceable if it is either one sided, unconscionable or unreasonable.

The courts in India have held in its various judgments that in the event of breach of contract by the employee, the employer shall be entitled to recover damages only if a considerable amount of money was spent on providing training or incurred other expenses for the employee.

Further, the courts have been reluctant to restrain the employee from joining a competitor/other employer.

The employment bond will not be enforceable if it is either one sided, unconscionable or unreasonable

T Kalaiselvan
Advocate, Vellore
90093 Answers
2503 Consultations

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