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pankaj   25 December 2014

Bond amount recovery

Hi All,

I joined an IT company on Nov,2013. The bond period was 18 months and bond amount was 1.25 lakhs.
I quit that job on Feb,2014 as I got some better opportunity. On May, 2014 I got a letter that my rolls has been cancelled by the company.

Now, They are asking for bond amount around 1.35 lakhs. I got 2 letters from company and I didn't replied for that. But now, I got notice from company's lawyer that I need to pay this amount to them. otherwise they will take some legal action.

Could anybody please help me in this regards as I am unable to pay this huge amount.



 3 Replies

Kumar Doab (FIN)     25 December 2014

The Bond was created in lieu of what extra ordinary favor by the company:::::e.g. some certified training from some authorized/approved Instt. that would add to your qualification??

Under what circumstances you had to sign the Bond::::: e.g. did the company place it before you after you had resigned from previous employment.......................and no condition of Bond was informed in job. advt,interview call letter,selection letter,offer letter, appointment letter etc..............................and you had no other option?

Was any  promise made to you verbal or written e.g. some training,some foreign travel lieu of Bond that was not kept?


Did the employer breach its own contract e.g. delayed payment of earned wages, extended work hours but no OT, no compensatory off,unauthorized deductions, non issuance of salary slips, non payment of incentives,reimbursements, no provision of statutory benefits like PF,ESIC,Bonus,Gratuity, rude/coercive/threatening conduct etc that would render the employer unworthy of being employed with?

You may show the job. advt,interview call letter,selection letter,offer letter, appointment letter, HR policy/Service Rules and regulations, salary slips,attendance record, OT eligibility letters issued by company,legal notice etc to an able labor law consultant/Service matters lawyer and give inputs in person and proceed under expert advice of your lawyer....................

A fitting reply to the legal notice by your lawyer may put the matter on SHUT UP MODE!

If the company pulls you to the court then you may contest in court and curt may award pro rated payments or decline to award any liquidated damages to the company.......


Are you a member of employee's/trade unions?

The union leaders can also help!


The lawyer that has examined the docs on record and your inputs can advise you the best.


Approach your lawyer.




1 Like

pankaj   25 December 2014

Thanks Mr. Doab for your suggestions.

I joined the company as a Fresher. Company gave me 2 months training on a particular domain. I signed the agreement because I didn't had any other option at that time.

I just want to know that whether company can go legally for recovery of amount or not?? Will court accept this type of case or not?

Waiting for your reply.


Kumar Doab (FIN)     26 December 2014

The training on....................say machines/strategies/products/policies etc................... that is required for the employee to handle the counters or in other words work of employer, should be provided by the employer without any cost to employee.

It is not a venture for the employer to earn profit from training provided to employees.

If it is certified course from some Instt. even in such should be ascertained whether employee would be able to add some qualification or not? It might be some old/existing/obslete technology and employer might have bought it years back at the price of peanuts. 

The employer might be asked by the court to provide copies of the bills amounting to Rs...............claimed by the employer..........................

Liquidated damages are not neccessarily to be paid on demand and might have to be proved......

The company may claim that the signatory can not rescind the contract/agreement......................signed by him....

The court may not award any liquidated damages to company or may award pro rated amount...............


A fitting reply to the legal notice by your lawyer may put the matter on SHUT UP MODE!


It is reiterated that :::::

The lawyer that has examined the docs on record and your inputs can advise you the best, on merits and remedies..................


Approach alongwith elders of the family ................. your lawyer and proceed further under the expert guidance of your lawyer.



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