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trimurthy reddy (ase)     10 April 2012

Employer calims breach contract against employee valid or ??

Dear experts, I need your suggestions on the following.

Case background: Employer sent a notice thru lawyer firm-- a liquidate damage claim-- on contract breach—

 While offering employment from campus selection, employer took an agreement /contract on 100 Rs stamp paper—(which is having technical errors like stamp paper was brought on 10thAND  notary authority signed on 15th(IT LOOKS IT WAS BLANK ONE  –agreement was typed  AND signed on  20th  of same month ) and signed palce is fiirent than mumbai -notary official is in hyderbad.

I am claiming Content of the agreement null and void on the following reasons—

  01. It was clearly one sided

  02. it was having above said technical errors -- stamp paper buying date on 10th of October and notary authorized signatures date  15th (it might be blank typed with standard format but the ) --agreement notary signed authority was from remote town of Andhra Pradesh and signed in AP—But typed content of agreement says—MADE AT MUMBAI –ON 20TH (BUT AUTHORISED SIGNATURE SHOWS 15TH     )

03. Mentioned training duration 12 months-in fact training was happened for one month training only  they gave certificate of training completion from Coimbatore , tamilnadu and posted the job in Hyderabad where one year job service was given by employee.

04.  In the event of dispute or disagreement over the interpretation or any claim liability of any part including the surety the same shall referred to a nominated person BY EMPLYER AND HIS DECISION IS FINAL AND BINDING UP ON PARTIES AND EMPLOYER ALSO TAKE ALL THE OPPERTUNITIES BY CLAIMING ALL THE ARBITRATION SHALL BE Mumbai-

MY QUESTION -IS THIS STANDS INFRONT  LAWS OF INDIA ON NATURAL JUSTICE TO EVARY ONE) I feel arbitration or hearing can be  where the employee performing duties or delivering the services at the time of disputes as I come across a case of same organization it can be America if employee working in US means)

case background continuation:

After one year service employee was on leave for marriage and resumed the job after marriage—after working one month she again went on leave on–medical grounds and pregnancy reasons //she was absent for three months

SHE SUPPOSED TO INFORM OFFICIAL ABOUT HER SICKNESS WHICH SHE DID Y VERBALLY TO HR CO-ORDINATOR. ButTo make it official or written one they  cancelled her log in details so she cannot log in thru web portal where she supposed to apply/file a request  for a written leave..

Once She cured she visited the HR MANAGER (PHYSICAL PRESENCE FACE TO FACE) ------ AND GAVE HER EXCUSES BY PRODUCING MEDICAL CERTIFICATES (TRUTHS) BUT HR MANGER WENT HARSH AND ABUSE HER WITH BAD COMMENTS ON PREGNANCY PROBLEMS-HE TOLD –SHE WAS ALREADY TERMINATED GET LOST FROM THE OFFICE—being a lady she took all the insults and back with empty hands –(mistake from our end we did not file a suite at that time on ground reasons a lady//respect on the firm which gave food for one year)

After 6 months of this incident the guarantee received a notice from employer representatives claiming liquidate damages 50,000 on breach of contract or agreement (which is having above technical errors) and guarantee replied after inquiring with the employee with support documents and requested the claimant to give her job back as she is ready to Join back and she was not working anywhere since the date of employer harshen staying at home only.

One and half year the claminat was in silence—no response to the guarantee reply

March 15th CLAIMANT REFRED THAT CASE TO ARBITRATION- Now the case  IS in front of arbitrator in Mumbai hearing is on 26th of this month –I am staying in Hyderabad.

I wish to know the following.

Usually these type of contracts will stand in court or not?

Could i know the consequences and % of chances wining and loosing the case being a female employee- and - i am no where worked after that job with employer, I am house wife only with a baby. i dont wish to turn around courts and --if justice is my side means i am ready to fight any lawyer availbe with economical fees factors.


 3 Replies

Deepak Nair (lawyer)     10 April 2012

A proper comment can be given only after going through the terms and conditions of agreement and the details of your employment.


Anyway, as per various judgments of the Honorable Supreme Court, the employer can claim damages if it s proved that the employer has incurred a considerable amount of expenditure on the said employee.

The Employer is not entitled to claim if there is no considerble investment.

Further, as per sec.27 of Contract Act, any agreement in restraint of trade and practice is void.

trimurthy reddy (ase)     10 April 2012

Dear Nair,

                Thnk u fOr your timely reply.please check this agreent---techincal error--

1.notray person signture shows 15--of october and content written on 20th- OCTOBER--

2.NOTARY DONE IN REMOTE TOWN-- but content shows imade at Mumbai

3.i did not find employer signature on this --unless the SURETY SIGNED BEHALF OF EMPLOYER--WHICH MENTIONED IN THE END --IF I UNDERSTAND PROPERLY(can be like this)

 please do reply as i am planning to send my relative as an agent --Is this fine preactice (i feel nothing much argue he can mange as it not in court--) -appointing a lawyer in mumbai will make around some 5-10k which gr8 part of total compemsation.     

Attached File : 522252146 thlsagreementmade atmumbai on this.docx downloaded: 124 times

Deepak Nair (lawyer)     12 April 2012

Dear Mr.Reddy,

The above attached draft is a standard format. I did not find any one sided clause in the same. The person who have signed this is bound to follow the same.

Regarding the technicality of the agreement, the points raised by you are noticable. If the same is not signed by both the parties, the agreement is not valid in the eyes of law.

The case will be referred to an arbitrator appointed by the company. You can contest the same on the said points.

It is true that the advocate may charge certain fees. But, it would be advisable to send someone who has knowledge in law and who is capable of arguing well. Becaus, in arbitration too, the proceedings are same as that of courts.  

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