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Help seeker (no)     27 March 2011

Court summons issued for breaking training agreement

Dear Friends,

I need your sincere help and advice for breaking training agreement

 I left my former company in May 2010 with proper resignation but company didn’t accept my resignation because I have executed training bond. I have to work 3 years after finishing my onsite period.

 I have gave up all my gratuity, leaves and last month salary to company for compensation 6,00,000/- but they are asking huge amount of 32,00,000.

 After one month company has sent me legal notice from lawyer and I have also replied to their notice through my lawyer.

 After seven months in Feb 2011 I have received one summons from court, saything that I have to come to court to attend this case.

Now I am not in India and my parents little worried about this Summons.


Please advise me how to proceed with this case, Should I discuss with company again?    


I look forward for your valuable replies. I am attaching my training agreement for more information 


Thanking you in advance.




1)      The company hereby deputes the employee for training from 08.07.2007 to 08.07.2010 at Germany with the object of enabling the employee to get training in project management, process technology and the employee hereby agrees to undergo training.


2)      The employee shall faithfully, diligently and punctually take the fullest advantage of training and shall assimilate the various aspects/ knowledge imparted to him during the period of train and shall thereafter, on return make best use of the knowledge so gained for the benefit of the company.


3)      In consideration of the company sending the employee for training abroad at the cost of the company, and in consideration of the additional knowledge and experience that the employee would be gaining on account of the training, the employee shall work for the company for a minimum period of 3 years after returning from training. The employee shall not, under any circumstances work for any competitor of the company during a period of 3 years after training.


4)      In the event of the employee leaving the services of the company, either during the period of training or thereafter before completing 3 years of service after completion of training period and or the aforesaid period of 3years after completion of training, the employee shall be liable to pay to the company as damages a sum of Rs.32,00,000/- which the company would spend on deputing the employee for training. The break up of Rs.32,00,000/- is as under


a.       Airfare to Germany and from Germany to Bangalore                        - Rs.  1,00,000/-

b.      Expenses towards obtaining visa                                                        - Rs        5,000/-

c.       Accommodation Boarding, travelling and incidental expenses at     - Rs 12,00,000/-

d.      Special allowances paid during stay abroad for training                    - Rs 16,00,000/-

e.       Medical insurance                                                                               - Rs   2,95,000/-

Total :     Rs 32,00,000/-

5)      In the event of the employee indulging in any act of indiscipline or misconduct, or abandoning training and or employment or giving health reasons for not coming to duty, the said acts or any of such acts leading to termination of services of the employee by the company shall be deemed to be violation of terms of this agreement by the employee, and the employee shall become liable to pay liquidated damages as stipulated in clause (4) above.


6)      The employee shall keep the company’s trade secrets confidential and shall not disclose or disseminate any company’s information to any third party

7)      The employee undertakes not to disclose any information and or knowledge gained by him during his training and employment in the company to any person, firm or company and or to any individual or to any other body or entity. So also, any procedure, process, system or other improvements developed by the employee during the period of his service shall become the property of the company.


8)      The employee shall not, at any time either directly or indirectly disclose or disseminate to any person, firm or company any information of any kind concerning any matters affecting or relating to the products of the company, the company stocks, shares, stock options of the employees, company services, etc.


9)      Without being exhaustive, disclosure or passing of information of any of the following nature shall be deemed to be violation of this agreement.

a.       Parting with any information pertaining to the secrets of the company`s trade, and confidential information to any competitor, outsider, etc.

b.      Handing over designs, drawings, software or any other materials connected with the company to any competitor, firm or company.


10)   It is clearly agreed that in the event of the employee violating any of the stipulations and or terms contained in this agreement, the employee shall be liable to pay liquidated damages as stated in clause (4) above, in addition to becoming liable to pay any other sum or amount that the company may suffer on account of such violation including un liquidated damages that the company may claim against the employee for such violation.


11)  The surety has undertaken to ensure that employee fully complies with the terms of this agreement. Further, the surety has undertaken to compensate the company for breach of any of the terms of this agreement by the employee. The surety shall be liable to pay to the company any amount that the employee may become liable to pay to the company on account of breach of any of the terms of this agreement by the employee.


12)  Any difference or dispute between the parties arising out of this agreement shall be subject to jurisdiction of the courts at Bangalore only to the exclusion of any other court that may have jurisdiction in the matter.


In Witness whereof, the parties to this agreement have signed and executed this agreement on the above said date, month and year in the presence of: Signature of Company, Employee and Surety


 10 Replies

Kirti Kar Tripathi (lawyer)     27 March 2011

What is the contents of plaint and what relief has been ought in it..

Advice (engineer)     04 May 2011

Company has filed a cased against me with below points.

 Company is asking judgment and decree

 a)   For a sum of Rs. 32.40.000/- against defendant as liquidated damages along with interest thereon @6% per annum from the date of filling of the suit till realization in full.

 b)   To restrain Defendant from joining the services of any other organization engaged in the same field as the company / Competitor and or setting up a competing business for the remaining period of the non leaving agreement till end of June 2013

 c)   To restrain defendant from divulging or misusing any confidential information in his possession with regard to the activities whether manufacturing or ortherwise, of the company.

 d)   Enquiry into unlimited damages suffered by the company and decree for the same, as found dude upon such enquiry.

 e)   Award costs of the suit;

 f)    Such other order(s) / relief(s) as this Hon`ble court may deem fit, in the interest of equity and justice and in the circumstances of the case.


Our lawyer prepared reply for this court summons. This forum can help me to come out of this situation.


Thanking you in advance

Help seeker (no)     24 May 2011

Dear All


I have not received any reply from you guys. Please share your point of view and help me to give legal points.


 Thank you in advance



Help seeker

Kirti Kar Tripathi (lawyer)     24 May 2011

How much court fee is paid by the company.

Kirti Kar Tripathi (lawyer)     24 May 2011

How much court fee is paid by the company.

Advice (engineer)     24 May 2011

Company has paid amount of 1,50,000/- only

Kirti Kar Tripathi (lawyer)     24 May 2011

I think, the company has paid proper court fee. Thus technically the suit is valid. So for as legal position is concerned only one relief sought by the company against you legal i.e. claim of damages but other relief as asked by company is not maintainable under the law. At present I must say you have to contest the suit very carefully. moreover, without seeing the copy of the plaint proper advice is not posible. My advise is for to consult local lawyer who is well versed in civil law. 

Help seeker (no)     25 May 2011

Thank you for your valuable suggestion from you sir

I would like to give more information about my situation.

Company has deputed to his head quarter in the name of training and promised me that after my delegation promote me a Project Manager once I come back to India.

I joined this company in 2003 after 4 years of working India Company has deputed to head quarter to execute normal work.

I have attended few in-house training programs with head quarter employees but all training thought in German not in English which I cannot understand. This is just for name sake training program.

The training expenditure is only estimated during preparation of agreement not actual cost, I have found information in this forum that the allowance will be a part of wages it will not come under training expense.

Company has put me on a real project in onsite to work below my designation so that they can receive money from head quarter. Indian company has not paid any money for my training to head quarter.

As per agreement I have to work in head quarter for 3 years but Indian company has called back to India for 8months to work for local projects.

My question is now company has not broken agreement, the court will not ask?? My lawyer told me that court will ask a strict proof of expenditure spent on training to recover damages.

Help seeker (no)     25 May 2011

Actually it is not a full time training, it’s clearly an on job training mentioned in their court summons. I also had complete period of time sheet, it clearly state on which projects I have worked during this period.

Company has received a payment for my work from Head quarter but they are hiding this information. If I am in training program then Indian company has to pay to Head quarter but here it is in a opposite way.

I have already given my final settlement approx amount of 6 laks to company but now they are threatening to recover more. Company want to trouble and show what will happen if you break agreement to

Currently HR using agreement has a tool to retain people and now want to show how they trouble if you break agreement to rest of the employees.

I have requested the company for 3 months to promote what they have promised; unfortunately I have received very bad answer from dept. head. Company taken me granted and clearly said that I have to work 3years more to get that position.

Company is not interested to discuss further with me. After gave up 6laks from hard earn money now I am paying lawyer fees,

You are right the fees are really expensive and beside company harassing from last one year but there is no other way to come out of this situation.

I was working as a Team leader but in head quarter made me to work as a Draftsman (Draftsman position I had 7years back when I joined this company)

In between they called back to India for a period of 8months and it is not mentioned in agreement.


Advice (engineer)     31 May 2011

Hi Everyone, Thank you for your feed aback and our lawyer has submitted written statement to court summons received from Company. Now they have put an objection to our written statement and taken 2 months to reply back. What will be the next step in court? When will argument start? When I should present in court? In agreement clearly stated city court but now they have filed a case in a different district civil court, does it impact anything? Thank you in advance Raj

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