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Sahilkumar Bhanderi   13 February 2022

How break employment bond without paying certain amount?

Hello, 
I signed 2 years bond With IT company. In which I have to pay 3 times of my salary to company if i resign before my contract. I gave them one bank cheque with my sign on it but didn't write amount by myself. So can employer write that amount by himself? And Can i use this as a legal proof in case of they file a case?  

 



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 3 Replies

Kishor Mehta (CEO)     13 February 2022

You are legally bound to honour the contract you have signed with your employer. Take legal advice before doing anything foolhardy which may put you to unnecessary legal expenditure.

P. Venu (Advocate)     13 February 2022

Facts posted suggest the terms of the employment bond to be void on account of the provisions  of Section 27 of the Indian Contract Act:

Section 27.   Agreement in restraint of trade, void.

Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void.

Exception 1.Saving of agreement not to carry on business of which good-will is sold.One who sells the good-will of a business may agree with the buyer to refrain from carrying on a similar business, within specified local limits, so long as the buyer, or any person deriving title to the good-will from him, carries on a like business therein, provided that such limits appear to the Court reasonable, regard being had to the nature of the business.

It is the settled legal position that terms of the employment bond are enforceable only if the Employer has incurred  substantial expenditure in imparting special training to the employee.

In the absence of any enforceable debt, the blank signed cheque cannot be made use initiating action under Section 138 of the Negotiable Instruments Act.

 

Dr J C Vashista (Advocate)     14 February 2022

Both of you are bound by terms and conditions of appointment.


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