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Indian Law/Service contract .Urgent


QUESTION: I work in a school as a part-time teacher on an annual contract basis which is renewed every year on 1st June. This year it has still not been done. The school also sent me for training in 2011 and I have signed a bond to pay the training amount if I resign or service terminated within 3 yrs.They also forbid me to work in another place in these 3 yrs. However, they have not utilized my training in any way.
I want to leave my job.My question is now that my contract has not been renewed , can i leave without paying bond? What if they backdate my contract to 1st and force me to pay? if the new contract is changed so as to be disadvantageous to me, do I still need to accept the contract or pay the bond?
Thank you.

ANSWER: An employment contract may be terminated by either party at any time by complying with the termination clause contained in the contract.
Bonds are one sided contract executed under compulsion and it has no validity in the eye of law except in case of recovery of reasonable expenses like actual training expenses.As per section 27 of the Contract Act,all agreements in restraint of any profession is void.It also violates Article 19 of our Constitution,which guarantees freedom of professions to all individuals.Therefore,in the instant case,your employer has no authority to implement the Bond unless it is for recovery of  actual expenses incurred for providing training traing abroad.It is suggested that let them prove before the court actual expenses incurred by them for the said training and you should not under any circumstances agree to pay any amount from your own pocket.You submit your notice to your employer asking them to release you on the date mentioned in your notice and also settle your outstanding dues.By not renewing your contract and also by allowing you to continue,by their implied act,they have allowed you to continue and now it is at your discretion,whether to continue or to leave.Apparently, you have a strong case in the matter and nothing to worry about.Please take appropriate action in consultation with a lawyer.

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

QUESTION: Thank you so much, you have put my mind at ease. I just have one more question,since my contract has expired on 31st May 2013 and no new contract has been provided, do I still need to tender a resignation letter? I have no dues in school as I work on a no work no pay mode. I am also not going to school now as it is summer vacation.
Waiting earnestly for your reply.
Thank you.

If you were in contract service and has not received any intimation regarding renewal of contract before its expiry,according to me there is no need to submit any letter of resignation.However,please take appropriate action in consultation with a lawyer.

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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.

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