Karthikeyan (manager) 15 April 2014

Legal status of aggrement executed on white paper

Hi Experts,

I would like to know the legal status of an service aggrement or bond executed on white paper by my company.

I works for XYZ company(not interested to disclose) usually send employees to US for training on B1 Visa(which stands for business meeting) after executing a bond/service aggrement of 6 months to be with company after return i.e 4 months and 2 months notice period.

Just before I was about to travel company has changed its policy and made it 1 year excluding notice period and I had to sign before I travelled.

The agreement was created such a way that they took a printout on a regular A4 size paper and mentioned the terms and got it signed. and with a clause that if I have to leave the Organization (at my will or due to some reasons from company side) prior to the stipulated period I have to pay a sum of 2 lakhs.

Is it enforeable by law in India in the absense of any stamp paper ? or can they now get it stamped on the already executed aggrement or after it was signed by me.

Your prompt response is highly appreciated.

Thank you.

Regards,
Kathikeyan.

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4 Replies

adv.raghavan (Advocate,9444674980) 16 April 2014

Yes it is valid,they can get it stamped it even now, your presence is not required. Getting it stamped from revenue authorities is only for govt revenue purpose, there is no illegality on this.

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T. Kalaiselvan, Advocate (Advocate) 16 April 2014

So at the time of agreement it was just a plain paper, but the stamp can be affixed after that also in case of necessity by the Company as rightly advised by learned advocate Mr.Raghavan, therefore it can be considered as valid.

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Karthikeyan (manager) 28 April 2014

Thanks a lot for your valuable input...

Could please clarify my few doubts.. I am not clear about the revenue authorotoes mentioned in the feed back and its role.

Doesn't it looks odd, when the Agreement made on white papper eight months ago and getting it stamped now.. ?

Eventhough the travel was for gaining knowledge but the type of Visa used in for Business meeting. mandatorly not for gaining knowledge. and in that case then the travel has to be considered as Business meeting and Company has to charge it as revenue expenditure and cannot force for such recovery.

Even though ignorance of a law is not an excuse... Can I defend myself from not paying the compensation and does law provides any support.

Thank you

Karthikeyan..