Section 73 of indian contract act 1872
Amiti
(Querist) 20 November 2014
This query is : Resolved
Hi This is regarding the section 73 of Indian contract act 1872.I got the offer from the IT (Maven Wave Partners)company which states that if i sign the offer letter and submit it to them and then do not join the company or leave the company within 30 days then under the breach of this agreement i am entitled to pay 10 % of the base compensation. The offer letter is not on a stamp paper and simply on a companies letter head. so here ares some of my questions:-
1.) Is the contract applicable on me?
2.) Also they can make me work in any department other than the department they offered, so in that case a person is left with no choice other than fro leaving the company. So please let me know should i sign the document.
Please reply as soon as possible as i have to sign it todayi.e on 20th Nov 2014, otherwise the offer letter will be withdrawn.
Thanks,
Amit Kapoor
Devajyoti Barman
(Expert) 20 November 2014
How do you know that this cause refer to section 73 of Indian Contract Act?
Are you an advocate and asking for solution?
Disclose it first.
ajay sethi
(Expert) 20 November 2014
once you accept the offer letter terms and conditions would be binding upon you . make some discreet inquires about the company before accepting the offer letter . the company can shift you to another department if need arises
Amiti
(Querist) 20 November 2014
I have the offer letter in which it is written . I am not an advocate but just want to know that does a clause like this for contract labour valid in india
Rajendra K Goyal
(Expert) 20 November 2014
After accepting the conditions of the offer letter you are bound.
Amiti
(Querist) 20 November 2014
Rajendra thanks for the reply .but the offer letter is on a plain paper not on stamp paper .i think the bonded labour is not applicable in india until and unless it is not on stamp paper
ajay sethi
(Expert) 20 November 2014
even if it is on company letter head once you accept terms of appointment it would be binding upon you
Rajendra K Goyal
(Expert) 20 November 2014
Agree, if the offer letter is on company letterhead it is valid.
Amiti
(Querist) 20 November 2014
If the contract is valid then why we say that in india the bonded labour is illegal.
Also one thind if i sign the document with the wrong signature then they cannot challenge in the court
Guest
(Expert) 20 November 2014
Have you been picked up and compelled to work as labour till life in lieu of some debt by yourself or your parents?
Don't try to mix-up and misinterpret the terms of a "bonded labour" and the "service bond", while later one is a mutually accepted agreement in terms of the Indian Contract Act.
If you are unable to accept the terms, nobody of the company can compel you to work for the company. It is your sweet will to accept or not the terms of agreement. If not willing to serve the company on their terms, better try somewhere else. why fuss?
Second part of your last query is quite unethical. You can sign the document with wrong signature, provided you are ready to bear with the legal consequences on detection of your fraud, cheating and impersonation, besides your termination with a big blot on your future career.
If you are thinking of a fraudulent activity at the very initial stage of your career, I wonder, what development of your career you can achieve and where and with what results that can end?
Amiti
(Querist) 20 November 2014
Thanks for the reply Ps dhingra. Sir my only concern here is we are living in a democratic country where these kind of things are illegal. When i was disucssing regarding the offer letter there was nothing mentioned like this but after they sent the soft copy there they clearly mentioned it.So i felt kind of cheated if these people are not honest then why should we be honest with them.I live in india, i have freedom to choose and work. Companies like these are trying to destroy the careers of people like us.
Amiti
(Querist) 21 November 2014
I suppose you can understand the problem that i am
Facing
Guest
(Expert) 21 November 2014
Dear Amiti,
If you consider service bond as illegal, you must also be in the knowledge of the relevant section of some Act under which that is illegal. Moreover, if you consider the service bond as illegal, nobody (including myself) can compel you to enter in to that contract, as you can use your democratic right to reject that bond, as well as service of the company.
About your mention of living in a democratic country, you should also know that democracy equally applies to both the parties of contract. Both are free to spell their own terms, irrespective of whether acceptable or not to any party. Naturally, a company which works for the profitability of its stakeholders, engages employees for increase of its productivity, not for creating a liability by fulfilling the wishes of the employees to enter or leave the company at their sweet will thinking the company as a dharamshala (night shelter). So, where the company has the democratic right to spell its own conditions, you also have the democratic right to reject those terms and part with the ways. Why hanker after the job of the company, when the terms do not suit you and you feel cheated? Your are free to part with the way with the company.
Further, discussion and documents are two separate things. There is a lot of difference between a verbal discussion and the contents of a written document. Anthing, which is left or not revealed intentionally during discussion, can come to light on going through the concerned document. You have already seen the discrepancy through the bond document, so you should feel yourself free to reject the offer of the company. That is why, I stated earlier, why fuss.
One thing you must know, the experts here can neither change the terms and conditions of the company, nor can compel you to accept the offer. You have to use your own wisdom, whether you can afford to join the service or reject the offer. Suppose, even if the experts say that the service bond is illegal, would you go to the court to file a case against the company to fight at your own cost to get the clause deleted, which seems to be illegal to you?
You have two options, which you can democratically use, reject the offer or accept the offer. Mind it, you are not going to pay any fee to any of the experts here in any case whether you accept or reject the offer at their advice or my advice.
Guest
(Expert) 21 November 2014
About your statement, "I suppose you can understand the problem that i am facing," I don't think you have any type of problem. What is the compulsion with you to take up a job with a cheating company?
Better, find some other opportunity. That may probably prove to be more lucrative to you than the present offer.
Kumar Doab
(Expert) 21 November 2014
It is 10% of Monthly or Annual Base Salary?
You have posted that the T&C that are iinserted in the job offer sent as Soft Copy (email) were never discussed and negotiated with you hence were never revealed to you.
You have the freedom/liberty to write back accordingly and demand to supply you the amended job offer minus these conditions by means of hard copy by Redg.Post.
You are at liberty to ask would this conditions of liquidated damages apply to company as well if company imitates separation....??
You have the freedom to ask on what basis company has arrived at compensation of 10% of base salary?
So that you can decide damages that you too can claim....on the same parameters set by the company!
If you do not want to be transferred to any other Dept and even town you should state so in writing....and if appointment letter issued to you doesn't contain clause on right to transfer the employee, then employee can't be transferred....
There are enough posts initiated by employees that say service engineer was transferred to make sale calls and assigned sales targets...
Assuming that company has been fantasizing that it has incurred huge expenses on process of recruitment then at least you have not asked to spend and company can very well advertise vacancy on its walls or even write with chalk or piece of coal...
You have also suffered as you must have spent precious personal, business hours and hard earned monies for preparing to apply, appear,compete, and success to get selected for this interview...
.and might have ignored some option that might have been better.
You may claim your damages if company decline to amend the T&C...
You may also add expenses incurred by you e.g. traveling to stand/ buying newspaper, accessing internet, parking charges, consultation for Vitae, travelling to attend interview, coCostco apparel, photocopies etc....and demand payment..
Such tactics can be brought in the knowledge of larger communities thru e.g. Students Union's so that they are property aware.....employees unions, trade unions, communities,,,
