Breaking of Service Bond
Shailendra Dhanuk
(Querist) 14 April 2011
This query is : Resolved
I was working in a Pvt Ltd Company and my net salary is Rs.4600/- per month. After 1 and half year I resigned and joined another company but within two weeks I realized that my new job was not fit for me. I came back to old company for rejoining. Company allowed me to rejoin with a condition that I have to sign a service bond mentioning I couldn't leave before two years and if I do so, then I will be charged for Rs.50,000/-.
At the time of rejoining I did not fill any kind of form. As I was in urgent need of job so I signed the bond and received my appointment letter, that's all. Now after 6 months, I am getting a good opportunity in Ltd Company with good salary. I tried to negotiate for Rs.50,000/- out of court but Old company is not ready. Company is saying it will file a case for breaking service bond or pay him Rs.50,000/- through court. As my work is totally clerical (computer), I didn't take any training from them.
I have heard Pvt Company don't go to court regarding service bond. They just threat the employee. My local lawyer is saying, if company files a case then you have to fight.
I am afraid and confused regarding court case. Please help.
Advocate. Arunagiri
(Expert) 14 April 2011
"I tried to negotiate for Rs. 50,000/- out of court but Old company is not ready."
If you are ready to pay Rs.50000/- they will no go to court.
Shailendra Dhanuk
(Querist) 14 April 2011
Can the company charge Rs.50,000/- from me? By no way company is ready to take the money by cash/ cheque. If I fight case, then is it possible for company to win the case? I have already sent the resignation letter through speed post
Advocate. Arunagiri
(Expert) 14 April 2011
Your query is hypothetical, You are ready to make the payment, then why the company is filing case without accepting your offer.
Shailendra Dhanuk
(Querist) 14 April 2011
May be company is not getting such a cheap employee in current market. May be after hearing the word "court", I may change my decision and work for company. But my decision is final i.e. I am going for new job. Regarding Rs.50,000/-, I went to concerned person of company personally and requested him to release me against service bond money but he was saying only one thing that he could not do anything. Everything is in the hand of court. After hearing this I decided to resign and sent it by speed post. I don't want to lose this good job offer.
RAJU O.F.,
(Expert) 16 April 2011
Since you have executed a bond for serving the Pvt. Ltd. company for two years, you are laiable to pay Rs.50,000/- as agreed, if you leave the company within 2 years from the date of execution. If you are prepared to pay Rs.50,000/- for leaving the company and if the said previous employer refused to accept the money by cash, you may send the amount by crossed DD, taken in favour of the said company and send it along with your covering letter, by Regd. Post+ AD. The company will receive it and discharge you.
Shailendra Dhanuk
(Querist) 16 April 2011
Your suggestion is not bad and I am also ready with Rs. 50,000/-, but I consulted with my local lawyer, he is saying that first let the company demand for money by sending letter then we will pay them. Why should we take step first?
In my case, which letter will come first to me, company's warning letter for payment of Rs. 50,000/- or company's lawyer letter to meet in the court?
Shailendra Dhanuk
(Querist) 09 May 2011
On Saturday (07.05.2011) I received a laywer's letter to appear in my previous company HO within a week and to pay Rs. 50,000/- otherwise he is going to take civil and criminal legal action against me. I consulted my local lawyer, and told him that my financial condition is very weak and I am unable to pay this huge amount of money at a time. He said this kind of case takes minimum 5 - 6 years to complete. Moreover, if we lose the case then court will fix monthly installment which will be easier for me to pay.
(At present I have taken loan from people to pay to company but if I get 5-6 years time in hand, then this amount will not be a matter for me).
My main fear:
1. Will I be put to jail if I lose the case?
2. How much my lawyer's word is true?
Advocate. Arunagiri
(Expert) 09 May 2011
Previously you said that you are ready to pay Rs.50,000/-. If you make the payment no case arises.
