The employer has not given any option in writing to accept pay cut and remain in employment or has not given notice of termination.
The employer can not make any deduction from wages until or unless it is a statutory deduction say.PF, TDS etc………………………or there exists a valid agreement between employer and employee.
In such case if you decline to accept pay cut resign under protest (without tendering and serving notice period) then employer although in such a case should not……………… but still may compute/adjust notice pay…………………………..
It is a bad practice.
Instead of termination notice it has decided to coerce/force the employee to leave and suffer.
Teachers are not covered as ‘Workman’ as in ID Act.
The options available to you are to report the matter to Univ. with which it is affiliated, authorities under state education act, many of the teachers unions…………………..
You may obtain legal opinion from your Labor Law consultant/service lawyer and show all of your employment related docs on record.