Indian Law/service bond

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Question
I am working as a Po in Andhra bank joined in may and I am now selected in ssc so I want to leave the bank I have already given notice about my resignation after 3 months.....but I have signed a bond of 2 lacks if I don't work for the bank for 3 years....i don't think the bank has spent that much on me for training......

Do I have to pay the amount or there is any other way????

Please guide me..

Answer
  Even if you have executed a service-bond,you should not agree to pay any amount.Such type of bond is one sided contract executed under compulsion and it has no validity in the eye of law.As per section 27 of the Contract Act,all agreements in restraint of any trade,profession or business are void.It also violates Article 19 of our Constitution,which guarantees freedom of professions to all individuals.The courts in India have held in its various judgments that in the event of breach of contract by the employee, the employer shall be entitled to recover only the actual loss suffered by it.Damages are calculated as per the provisions of section 73 and 74 of the Indian Contract Act. Even if the bond stipulates payment of any penalty amount in the event of breach, it does not mean that the employer shall be entitled to receive the stipulated amount in full; the courts shall determine the reasonable amount of compensation to be paid based on the period of service rendered,terms and conditions of service etc.
References of leading case laws on the relevant matter are given below:
1 Central Inland Water Transport Corporation v Brojonath Ganguly, (1986)IILLJ171SC

2 Niranjan Shankar Golikari v The Century Spinning and Manufacturing Company Ltd, AIR 1967 SC 1098

3 Nandganj Sihori Sugar Company Ltd v Badrinath Dixit, & Ors, AIR1991 SC 1525

4.Sicpa India Limited v. Shri Manas Pratim Deb

In view of the above,please do not agree to pay any amount from your own pocket.Let them proof before the court the actual loss suffered by them the.Since,you have worked for a very short period,there seems to be no justification to recover any loss.
You immediately lodge an online complaint to the Banking Dept. of GOI through Grivance Redressal Mechanism.You just log in that site and lodge the compliant.You will immediately get some result.
You can also serve a legal notice to them.

Indian Law

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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.

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