• Bond money recovery

Sir, I got admission in a Army medical college for a post graduate degree in year 2014. During admission I have signed a bond stating that "I have to serve for 5 year (SSC) or I have to pay 25 lakhs". After PG course I didn't join in year 2018 for SSC and went for higher education.
Now after 3.5 years( in year 2021) union of india filed a civil suit for bond money recovery with 18% interest.
Q1. Is there any limitations for bond money recovery by union of india?(specifically as in my case)
Q2. What can be my defence in this case? Please suggest
Asked 4 years ago in Labour

7 answers received in 1 day.

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9 Answers

Suit has to be filed within period of 3 years 

 

take the plea that claim is barred by limitation 

 

Bond signed in 2014 and suit filed in 2021 

Ajay Sethi
Advocate, Mumbai
100049 Answers
8169 Consultations

For recovery of any debt including bond money is 3 years from the date of the amount becoming due. In your case suit is file after three half years which  is time barred by six months. On the ground of limitation and other grounds you can contest the suit.

Ravi Shinde
Advocate, Hyderabad
5133 Answers
42 Consultations

Hi, Suit for recovery of money need to file with in three years. In your case limitation will come. The Government will not possible to recover the money.

Pradeep Bharathipura
Advocate, Bangalore
5625 Answers
339 Consultations

Dear Sir

The suit must be filed within 3 years from the due date.

It seems that this time has been exceeded, so the suit can be contested.

Thank you

Anik Miu
Advocate, Bangalore
11087 Answers
125 Consultations

3 years limitation

Limitation will be your defence

If you need any further assistance then you can approach me through kaanoon or LinkedIn.

Prashant Nayak
Advocate, Mumbai
34720 Answers
250 Consultations

1. As per Limitation Act, the Limitation of a recovery suit is limited to 3 years from the date of agreement /bound or the last payment if made. 

2. Section 27 of the Indian Contract Act prohibits any agreement in restraint of trade and profession.

Mohammed Shahzad
Advocate, Delhi
15875 Answers
243 Consultations

1. For recovery of money the limitation is three years period from the date of execution of the bond i.e., from the date it has become effective to enforce the bond as per law. 

2. You may have to state that you have not violated the conditions  but you had to pursue the higher studies hence not joining the forces as SSC officer  was unavoidable. 

T Kalaiselvan
Advocate, Vellore
90252 Answers
2509 Consultations

Dear querist, 

The bond between the employee and the employer is legal in Indian law. but in your situation you are a student and the bond can be challenged on various defences which can be ascertained after purusing the bond agreement signed by you. There will be forsure any legal void through whoch an effective defence can be established before the court of law against Uoi. Further, A fundamental right to pursue the education further can also be claimed as the embodiment of right to personal liberty enshrined under Article 21 of COI. 

I am also providing the guidelines by the Courts in India for the bonds below for your reference as:- 

Guidelines For Valid Employment Bonds

Indian courts have t laid down certain guidelines regarding the drafting of a valid and legal employment bond as:

  1. The employee’s interest must be considered along with the employer’s interest.
  2. The employer must be compensated when the employee breaches the provisions of the bond.
  3. The time restraint on the employee must not be punitive in nature and must not violate an employee’s right to employment.
  4. The amount of compensation exacted on the employee must be reasonable and not inordinate.           

 

Further, the grounds which are being taken care of by the courts in case the brecah happens is based on the circumstances mentioned below as:-

  1. When the employer has spent money on training the employee.
  2. When the training was imparted on the employee on consideration that he/she would not leave the employment for a particular period of time.
  3. The employee violates any provisions of the employment bond.
  4. The employer has suffered damages due to the breach of bond.

Therefore, the crucial thing is the agreement signed by you which needs to be perused firstly. You can contact me for consultation if you need my assistance on 

https://g.page/r/CfmI4KgE0neOEA0

 

Regards, 

Yuganshu Sharma
Advocate, Delhi
1151 Answers
4 Consultations

1. 3years

2. Such bonds are illegal in view of section 27 of the Indian contract Act which states that any agreement in restraint of trade of profession is void and cannot be enforced.

Contact a competent lawyer at the earliest.

Siddharth Jain
Advocate, New Delhi
6619 Answers
102 Consultations

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