You are here:

Indian Law/Resignation from Onsite

Advertisement


Question
QUESTION: Hi Iam working in onsite. before coming to onsite i signed a bound to server 6month once i am back to india. now my client want to hire me. and i want to know what will happen if i break the bound. i am ready to make the payment,but i know my current company will not agree.

Q1. can i just brake the bound. i dont have any bound in the country where i am working..( i received a inter departmental transfer letter)no bound.

Q2. i have singed a bound to sever my company after i return to india for 6month.

Regrda,
Ram

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: Dear Arun Kumar,

Thanks for you advise, i really glad you gave the response so quick. I have few more questions related to same topic.

1.In the situation i break the bound. will i be eligible for Experience certificate and Relieving letter.as per your answer i think i am ?
2. Before breaking the bound , do i need to give any notice (1month/2month)? (but my company wont pay me during notice period)
3. if i go to court to seek help to get my experience certificate/relieving letter. do i need to be Physically  present in court in India?

Regards,
Ram

Answer
They are legally bound to issue the release order.Normally a good employer issues service certificate.But in the instant case, your employer in order to harass you, may not issue the release order,experience certificate and may even not release your outstanding dues.However,ultimately you will get everything through court with penal interest for embarassing you.
Before leaving the organisation, you shall have to serve termination notice as per your terms of your engagement.
Intially you shall have to issue a legal notice to give the above documents and yur outstanding dues and threatening them that in case of non-compliance,you shall be compelled to take suitable legal actions against them.If they do not comply with the same,ultimately you shall have to approach the court.Apparently,case is strong for you .
Please take all actions in consultation with a lawyer to protect yur interest.

Indian Law

All Answers


Answers by Expert:


Ask Experts

Volunteer


Arun Kumar Maitra

Expertise

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.

Experience

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.

Organizations
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

Publications
Nil.

Education/Credentials
M.Com;LL.B;A.C.A;A.C.S.

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.

©2016 About.com. All rights reserved.