• Resignation,recovery of bond amount from employer

After completion of my 10+2, I enrolled myself into a Degree program in a institute owned by a PSU which had two phases.Advertisement was published by that PSU in the Employment News.Fee of phase 1 of the course (classroom training)  was borne by me.Phase 2 training was practical shipboard training, which was sponsored by that PSU without any costs.But after completion of phase 1,just before commencement of phase 2  we were made to sign a bond of 4.5 lakhs rupees( amount spent by the PSU in phase 2 for us), if we dont serve the company for three years upon completion of the degree. I completed my degree and served the company for 14.5 months. Now I want to resign from the company but company is asking me to pay 4.5 lakhs rupees.Now I am going to pay amount and join my new govt job. 
    In the advertisement given by that PSU  in employment news(in October, 2008) nothing was mentioned about the bond amount ie 4.5 lakhs. It was only  mentioned that "in  case of offer of employment by the company you have to serve for a period of three years.This is a requirement as under the gazette notification S.O.2132(E) issued on december 12,2007."
       In this notification,Directorate general of shipping describes cost component of the phase 2 training,but did not mention anything abound bond signing requirements.We were not aware of bond amount at the time of admission in the phase 1, but in midway they made us to sign such a huge bond amount.I was left with  no option , other than siging the bond as I have already spent huge amount money and time in phase 1.
   Now I want to send legal notice to the company for recovery of the money. What will be the possibility of winning the case if I file a case against that PSU for recovery of the money on the basis of " non-proper display of terms and condition in the advertisement" published in the employment news at the beginning ie before starting of phase 1 of the course.
       
      Morever the whole process took 9 months after I gave notice.They were not processing my request and made unnecessary delay because of which I was suffering from tremendous mental pressure.Can I mention this mental harassment point in court? In this 9 months I sent them repeated reminders in email, but got only one reply," your request is in process".Kindly advise whether  by court process I can recover the amount from the company.
Asked 8 months ago in Labour from Pathsala, Assam
1) once you have signed the bond terms are binding upon you 

2) you were required to serve for 3 years on completion of degree but you have served for only 14.5 months 

3)you have stated that  the amount sought to be recovered represents costs incurred on your training for phase 2 

4) if you file any case company would have to prove  that it has incurred costs towards your training 

5) the company can take plea that sum of Rs 4.5 lakhs represents liquidated damages for breach of contract 
Ajay Sethi
Advocate, Mumbai
23386 Answers
1229 Consultations
5.0 on 5.0
1) the amount of Rs 3 lakhs is inclusive of amount spent on your training ,wages  transportation etc 

2) it is necessary to peruse bond company has asked you to sign  to advice further 

Ajay Sethi
Advocate, Mumbai
23386 Answers
1229 Consultations
5.0 on 5.0
  Morever the whole process took 9 months after I gave notice.They were not processing my request and made unnecessary delay because of which I was suffering from tremendous mental pressure.Can I mention this mental harassment point in court? In this 9 months I sent them repeated reminders in email, but got only one reply," your request is in process".Kindly advise whether  by court process I can recover the amount from the company.

If what you say is right then the company's activity of getting a bond for Rs. 4.5 lacs signed by you in the mid of phase-II is wrong and illegal.  
If at all there was a bond to be signed then it should have been informed to you in advance or at the beginning itself so that you could have decided based on your conveniences about the acceptance of the offer or not.
You have stated to have sent notice, whether it was a legal notice or just a letter to the company by an email?
Well did you mention the relief you sought  in the said notice/letter?
You said that you are going to pay the amount, it means you have not paid it so far, so where is the question of recovery?
However since you have already filed a suit for recovery it can be presumed that you have paid the company.   It means you did not feel the pain while paying the amount and now after admitting the rules for payment of bond amount you are making hue and cry over foul play about the company(?) 
Well if you have already filed a recovery suit there is no question of adding anything now in it seeking compensation for mental harassment. 
T Kalaiselvan
Advocate, Vellore
14166 Answers
128 Consultations
5.0 on 5.0
 What does this clause mean? Bond amount is only 3 lakhs or 3 lakhs plus cost of training and other cost mentioned in the sentence?  I rejected the job offer but want to know the meaning of the clause.

This bond is for the cost of training and other incidentals.  The Rs. 3 lacs covers all those conditions and nothing extra. 
T Kalaiselvan
Advocate, Vellore
14166 Answers
128 Consultations
5.0 on 5.0
The clause is self explanatory as it makes you liable to pay liquidated damages to the tune of 3 lakhs and the amount spent on your training, wages and transportation to the company if you breach the contract. So it is not going to be 3 lakhs only. 
Ashish Davessar
Advocate, Jaipur
18259 Answers
450 Consultations
5.0 on 5.0
Once you sign a bond it binds you. A fresh bond, in supersession of the original contract, may be executed at anytime during the employment. You are free to file a suit for recovery which can be contested by the company. The company can recover liquidated damages depending on the duration of breach and the loss suffered by it as a consequence thereof.
Ashish Davessar
Advocate, Jaipur
18259 Answers
450 Consultations
5.0 on 5.0
if at the time of admission it is mentioned that fee of second phase will be completely free then you are not bound to pay compensation  according to agreement. 

you should file a suit for rescinding of agreement because your consent is taken by undue influence. you have already paid all expenses of the first phase so company took undue advantage and prepared this agreement.

court will cancel this agreement and you would not pay any compensation.  
Shivendra Pratap Singh
Advocate, Lucknow
2792 Answers
41 Consultations
4.9 on 5.0

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