Surety bond for service
amrnjn
(Querist) 30 March 2012
This query is : Resolved
Dear Sir,
I request you to please clarify if my surety bond for employment is enforceable in law or not.
The Surety Bond which my mother executed goes as follows:-
1) Bond was for Rs 2 Lakhs for a period of 3 years
2) Whereas Job offer was a contract job initial for 3 years and may be extendable on the discretion of management with one year probation.
3) How company can put 2 contradicting condition at the same time. Is not is like a becoming Slave for 3 years.
4) During signing of Bond I did not seen this clause in detail, since that moment I was in need of a job
5)However company after 1 year issued a letter for regularization, what I mean it was a completion of my probation. The real meaning I dont know. Letter simply saying regularization job after successful completion of 1 year.
6)Whereas Company saying it has extended the the tenure. But there is no clear cut written communication.
7) Upon my resignation, company accepted it with a condition to pay band amount.
8) When I quit the job I made a request to MD of the company for waiver of bond amount.
9) However, In these 5 month there were no kind of communication from company side for the payment of Bond.
10) Legally, Company is a Private Limited Company.
11) Now, after around 5 months, company is issuing legal notice in the name of my mother to pay band amount.
Other part of Job was:
1) Job was not able to provide sufficient environment for growth and sufficient day to day work. I was getting bore in the job.
2) During my exit interview, I clearly mentioned the dissatisfaction in the job and not proving sufficient work and growth opportunity was the reason for my resignation.
Please let me know under the condition am I bind to pay sum of 2 lakhs. Is not the contract is void under section 27 of Contract Act, where company is restraining my future.
Please advice what to do.
Regards
Amitabh Ranjan
V R SHROFF
(Expert) 31 March 2012
Repeated Questions many times in last 2 months, pl refer
Deepak Nair
(Expert) 31 March 2012
Your understanding is right. A service bond in respect of trade and practice is void. You are not liable to pay any amount if the company have not spent any amount on you.
Guest
(Expert) 01 April 2012
The bond does not violate the provisions of sec.27 of the Indian Contract Act, as that does not put any restriction on you to carry out profession, trade or business.
You were not a contractor, rather you were a contract employee initially, who was later on regularised on the job.
None else, except you, can be blamed if during signing of Bond you did not see the clause in detail, since that moment you were in need of a job. Before signing of bond, everything should be seen in detail. There is no sense to bring forth this matter at such a late stage.
Of course, you can now take a lesson from this instance for the future.
