You are here:

Indian Law/Educational Bond


QUESTION: I am a MBBS qualified Doctor. I Joined a prestigious Christian Minority medical school in Aug 2006 (18 yrs of age). I had got admission in the category of Sponsored Christian Candidate( There was a general, sponsored and NrI quota with separate ranklists).At the time of admission, we were asked to sign a service agreement for 2 yrs after medical studies at an institute of their choice or break the bond by paying 20lakh rs( for both general and chritian quota candidates). Since it was necessary to sign the bond for taking admission, i had done so.. During the term of studentship( 2nd yr as student to be exact), they had doubled our fees and I had to take loan from the bank to pay it. The college gave me a a 30,000rs non payable scjolarship and 50000 interest free loan scholarship. There was no loan sanction letters given to us.
After my medical studies, I had to start my bond in the same institution as they would not send me anywhere else. They are paying me rs 13000 per month and does not give any benefits. We are still considered as students under training though we have completed our MBBS and got our degrees and are registered doctors. Furthermore, the work hours are hectic and there are no benefits or additional payment for extra duties.. often we are forced to work for 24-36 hrs continuously.There are no punching in/out system, so we hav no way tracking the no of hours worked.
On asking them to increase the pay, they said they would not and that we are obliged to do the bond because we had got admission under christian qouta..Due to this reason and that my parents are not well I had to leave my bond after 3 months of service. I had repaid the interest free loan that the college had given me earlier.
Now they are threatening to sue me if i dont join duty or pay 20 lakhs as i joined under christian minority quota ...Is it possible for my college to enforce the bond at whatever salary and worktime they want????
Please help..

ANSWER: Employment Bond in India is generally treated as a one sided contract and hence not enforecable through court of law unless it was executed to recover any reasonable actual losses suffered by the employer.Such contract subject to certain exceptions is treated as void under section 27 of the Contract Act.It is also violative of Article 19 of our Constitution,which guarantees freedom of practising any profession or to do any trade,business or profession to every citizen of India.
In view of the above,normally Bond has no legal validity and  even if it was valid,your employer could not recover anything more than the actual reasonable loss suffered by them.Therefore, they have no right to claim any compensation from you for pre-mature termination of contract.If they creat any problem in releaseing you or settling your dues, please serve a legal notice upon them.In case they file a suit to enforce it,their possibilty of success is very remote on the grounds stated above.So, you need not least worry about that.Moreover, please do not pay any amount from your own pocket.That will be great blunder on your part.Even if any amount is recoverable from you, let them prove it before the court the actual loss suffered by them.Merely bringing a prosecution does not mean your employer is right.It depends upon facts and circumstances of the case,evidences placed before the court and arguments of the advocates.After hearing both the parties, judges always tries to give a reasonable decision.However, please take all actions in the matter in consultation with a service lawyer to protect your interest.

---------- FOLLOW-UP ----------

QUESTION: Thanks fro a prompt rteply sir... I have another doubt... Is there any chance that the court will ask me not pursue higher education till the matter is resolved???? or any chances I have to pay the money in court till this issue is solved.....
Thank you....

I cannot predict about the court's order.It is fully at its discretion.Moreover, if you are not satisfied with the court's order, you may appeal to the superior court.Moreover,the court is not likely to pass an unreasonable order.However, you may discuss it with your lawyer.Possibility of passing such type of order by the court,according to me is remote.

Indian Law

All Answers

Answers by Expert:

Ask Experts


Arun Kumar Maitra


Contract Law,Companies Act,Sale of Goods Act,Partnership Act,Negotiable Instument Acts,Constitution of India,Arbitration Act,Consumer Protection Act,Maternity Act,Payment of Gratuity Act,Payment of Bonus Act,Shops & Establishment Act etc.The answer to the grievance of the particular online query depends on the facts of the particular case and law applicable to it.However,my comments relating to the various queries raised through the "All Experts" should not be treated as legal advices and should not at all be relied upon.I do not accept any responsibility for them.They will only give you some ideas about the probable merits of your cases.Ultimate actions/decisions in the matter may please be taken in consultation with the Legal Experts in the relevant fields.My purpose of giving the comments is to increase my own knowledge on the subjects and share it with others.It is purely of academic interest to me. I strongly feel the more knowledge we share,the more we shall be able to learn because there is neither any age nor any end to learning.


I have experience of dealing with matters relating to holdings of board/general meetings,maintenance of statutory registers,filing of necessary returns with the RoC,obtaining licenses for import,replies to Parliament Questions,dealing with the Parliamentary Committees,appearing before various courts to defend my employers,filing affidavits/counter -affidavits,preparing written statements/re-joinder,giving advice to management on complicated legal issues,preparation,drafting and vetting of contracts etc. I have more than 35 years of experiences to deal with the Company Law and Other Commercial Laws of leading Organisations in the country both in Public as well as Private Sectors.

Member,Inst. of Chartered Accountants of India Member,Inst. of Company Secretaries of India; Member,Bar Council of India Member,All India Management Association Member,Delhi Management Association Ex. Vice-Chairman,Durgapore Chapter of the I.C.A.I. Expert ,CA Club India Expert ,Lawyers Club India Expert,AllExperts Ex. Faculty ,I.C.S.I as well as I.C.W.A of India Retd. Co. Secy. & G.M.(Law)/NFL(A Mini-Ratna A Schedule Central P.S.U.),New Delhi Ex.V.P.(Secretarial Dept.),Jaiprakash Associates Ltd. Ex. Co. Secy.,MAMC(A Govt. of India Enterprise),Durgapore



Awards and Honors
Obtained ''A'' Grade Certificate in the Parliamentary Procedure from the Secy. General of Parliament in 1994-95.It was in connection with a training course conducted by the BPE for PSU Executives.

Past/Present Clients
I am presently working as a Company Secretary in Old World Hospitality Pvt. Ltd.located in Delhi.It is engaged in Hospitality Industry.It has Units in India and abroad.It has been given the responsibility to look after operation & Management of ''India Habetat Centre'' located at Lodhi Road,New Delhi.

©2017 All rights reserved.