Service Bond
Sunil
(Querist) 04 May 2011
This query is : Resolved
Dear Sir / Madam,
I have entered in service bond with Company and the bond was on Rs. 100 stamp paper. Condition is to serve the company for 2 years otherwise Rs. 2.00 Lac penalty. My job performance was good. While appointing the company didnot give me salary increase saying that it cannot be adjusted with branch salary strucutre. Keeping faith I joined the company. Secondly, company didnot give me any technical training. Besides this, the employess joined after me in other division in same branch got almost 30% salary hike than me. The new employees were less experienced and less educated than me. Due to these reasons, I resigned after 13 months of service. I served complete notice period and submitted all company property safely to company. But company held all my dues and threatening me to pay the bond amount. After follow up company geve me relieving letter but still dues are not paid. This is going on since 6 months. What should I do to recover my dues of Rs. 52000/- from Company ? Please advice.
Devajyoti Barman
(Expert) 04 May 2011
Your Bond seems to suffers from imposing unreasonable terms making this as an agreement in restraint of trade which is void under the Indian Contract Act.
Refer your BOND for precise help.
Advocate. Arunagiri
(Expert) 04 May 2011
Please post the appointment order, bond and the relieving letter. We can help you.
Sunil
(Querist) 05 May 2011
Dear Sirs,
Uploaded bond copy. Please look into.
Regards.
Sunil
(Querist) 05 May 2011
Dear Sirs,
Uploaded Relieving letter copy. Please look into.
Regards.
Basavaraj
(Expert) 05 May 2011
Hi Sunil I have gone through your query. I I already resolved this type of questions by me.
For you i m posting once again.
In India Bond is illegal w.r.t employment since as per the Indian Statute, bonded labor system was long abolished and no bond can force any person to work against the employees wishes.
Article 19 of Indian Constitution talks of fundamental rights, as per the Article 19 the Constitution the write work is a fundamental right, and under no circumstance does the Fundamental rights under Article 19 be waived by any person nor can any person be forced to do something that amounting to the violation of the rights mentioned under Article 19.
As per the Indian Contract Act contracts entered between two parties if is one sided then such contract would be null and void. Most of the Bonds are one sided.
Again as per the Indian Contract Act no contract can be enforced on any person if the contract which is being so enforced causes any harm to the person on whom it is enforced and if performed would violate principles of natural justices.
As per Sec 368 of Indian Penal Code if any person or institute holds back any document or any use any legal document or threatens any legal suits or actions and thus forces a person to perform any act against his wishes or which is illegal or wrong as per the statute of Law of the land.
Sec 368 of Indian Penal Code talks about extortion by the threatening to file a legal suit. The minimum punishment under this act is 2 two years.
The Supreme Court of India has clearly stated that no employee can be forcefully employed against his will, just because he has signed a contract with the employer.
The Supremes Court also has stated that the employer cannot hold back any personal document of the employees as they are earned by the employees and the company has no claim on the same.
Any complain on the company would land the Directors and Managing Directors of the company in Jail or face the risk of Exemplary Damages, as the company is not an actual living entity but only a legal entity and the management are hands and heads of the company.
Now further you can go through the attached file. Its help ful for you to take further steps.
Regards
Basavaraj
Sunil
(Querist) 05 May 2011
Mr. Basavraj, thank you very much for the detailed reply. But what should I do to get my dues from the Company ? Company has given Relieving letter against my rigorous follow up and now not responding nor reminding for their claim and not giving my money also.
@Mr. Arunagiri : Further to this, appoinment letter doesnot say single word about Bond.
What to do to get dues ?
Guest
(Expert) 05 May 2011
Dear Sunil,
Did you write any letter to the Accounts Department for full and final settlement, as advised to you in the relieving letter? If so, when did you write and whether there is any response from that department or not?
Guest
(Expert) 05 May 2011
Dear Basavaraj,
For the guidance of all, would you please cite the relevant provision of any Act under which the bond is treated as illegal, as stated by you in your reply?
Sunil
(Querist) 05 May 2011
@ PS Dhingra : Full & Final settlement means I have to pay balance amount of Bond as against my request to waive of the bond amount and pay me my dues which are to the tune of Rs. 52000/-. Further to this, those who denied to sign the bond during joining are still in service. Company has not taken any action on them.
Sunil
(Querist) 06 May 2011
I need some answer, Sir.
