Sir, I joined a Central PSU. According to the service bond, I had to serve the organisation for a minimum period of three year. Otherwise I had to refund to the company my salary and other expenses incurred by company during training subject to a maximum of three lakh. As I resigned within six month, company made a claim after two years of 1 lakh rupees with interest which I did not pay. One of my fried was surety for the service bond.
Company sent legal to both of us separately (me and my friend who was surety) through her lawyer. After that both of us received court notice. As my fried was living outside India, I hired a lawyer who appeared in the court on my behalf. Court sent reminder notice to my friend. The notice sent though post and through a messenger was not received by my friend as he was not available in India.
After several hearing, the company sent information through my lawyer to compromise/ negotiation and told me to deposit principal amount of one lakh without interest which I accepted as per advice of my lawyer. Thereafter I appeared in court in person alongwith my lawyer and signed some court document for compromise (Me, my lawyer and company representative signed the document). I told the company representative that I would be able to deposit money only after six months as i have some other financial burden to discharge. Company representative told me that he would take his management approval and then will call me to sign agreement for payment.
Now, I have received call through my lawyer to come in person and sign the compromise document / agreement for depositing one lakh without interest within six month from the date on which I signed document in court requesting for compromise.
I still feel that demand of the company is not ethical and is exploiting my situation.
My dilemma is what will happen if I do not sign the compromise document now OR If I sign the document and do not pay the amount on due date. Will this document be treated as a fresh contract between me and company? Kindly advise sir what should I do?
Asked 1 year ago in Civil Law from Bangalore, Karnataka
Hi, if you don't want to pay the amount then you can contest the case on merits in the court.
2. Once you signed the Compromise petition in the court it is binding on you and you can't file a appeal to that order so you have to pay the amount once you signed the Compromise Petition in the court.
3. It is better think twice and sign the Compromise Petition.
1) you had agreed to serve company for period of 3 years . Company has spent money on your training
2) you resigned after 6 months and before expiry of bond period
3) the company can seek to recover amount of Ts 1 lakh
4) in court case filed by company compromise has been agreed to by you
5) you should sign he consent terms and pay amount within 6 months.
You have violated the employment contract which has given rise to a cause of action against you. It is the prerogative of the company to allow or disallow you further extension of time to make the payment. The company can prosecute the suit on merits in the court if you do not fall in line and deposit the amount. If you do not pay the amount despite signing the settlement agreement then execution proceedings can be taken out against you.
You have reportedly signed a bond for employment along with the employment offer letter. It becomes your duty to abide by the agreed conditions of employment.
However you could have given a reply notice to the company when you received a demand notice from the company denying all the averments and allegations.
You could have challenged the case properly before the trial court.
At least you should not have opted for compromise settlement.
As rightly opined by you the company is not justified in its demand when you hardly worked with it for six months only especially by making such a demand after two years of the cause of action.
Even now you can withdraw your consent to settle the amount demanded by the company and can properly fight against this unjustified demand made by the company. The company may not sustain the trial proceedings. anymore.
But once you sign the compromise agreement and promise to pay the amount, it becomes your liability from which you may not have a safe escape.