Service bond problems

aakash bhattacherjee (Querist) 04 January 2013 This query is : Resolved
Hello,
I work in a company as an Engineer where i had to sign a service bond of Rs. 3,00,000 for a period of 3 years(36 months).I had to submit a post dated cheque of Rs 3,00,000.I was told verbally that the bond value would decrease with time of service;being null and void by the period of completion of the bond .Now i have served the company for 28 months and wish to leave the company.I am willing to pay the remaining bond amount for 8 months to the company but the company is demanding the total bond amount of 3,00,000;which i am unable to pay.Kindly advice and tell me whether the company can legally prosecute me in case of non-payment of the amount.

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Raj Kumar Makkad (Expert) 04 January 2013
If you have duly signed the bond to serve for a particular period then the company is well within its legal rights to sue you if you violate the same.

If it is specifically written in that bond, the value of the bond after a specific period then obtain the benefit of that clause otherwise you should serve just for balance period and leave after completion of entire period undertaken.

Chattopadhyay Arghya (Expert) 05 January 2013
It depends upon what clauses in the bond you agreed and signed. But, on equitable ground if any such terms grossly show unfair exercise of superior bargaining position by the employer and outweighs your total benefit obtained during service, and impliedly amount to service free of cost to the employer, such bonded obligation may be relaxed by court.

Guest (Expert) 05 January 2013
Verbal statements cannot have any relevance unless the clause of diminishing effect of the bond amount over the period of time is included in the bond.

So, solution to your problem depends solely upon the contents and language of clauses included in the bond. Any opinion can be formed only after examination of the contents of the bond as well as other service related documents.