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akkiraj mhalunge (engineer)     24 May 2013

Service agreement breach


Hello Sir/Madam,
please help me out...
I was employed by engineering solution company in July 2011, as design engineer. at time of joining I signed a bond of 2,00,000 (two lack) rupee on 100rs stamp paper.
the bond says that i can not resign or leave the job before 2 years..
company never give me any training or not even induction training was provided!!!
Even i was not working on the commited profile...
from day 1 i was on customer site which was nearby and no special training was provided by client...
after 5 months client sent me offshore and my manager ask me to resign...
but i was bounded by bond so i cant resign...
then i decided to go for higher studies...
i left the job in next few days and started preparation for entrance...
i got a notice from advocate but my address but the name was not correct so i didn't accept that...
now after 1.6 years of incidence two guys from that company came to my residance claimimng that i have break an agreement and my father should come to meet the manager...
now what should i do?
please answer the query?
thanks a ton...


 4 Replies

Hemang (Advocate)     25 May 2013

Serve a counter notice and a reply to the notice to the effect that placing of resignation was justified, and that you are not obliged to respect the bond. This is specially so having regard to the fact that the company has not provided you the induction training, and the company has not specially expended for you in relation to training. 


If, the Company files a suit, you can well contest the suit on this line. Beside this, you have a right to serve elsewere. The bond does not mean slavery of the employer. 


This is what the Courts have held. It sounds to be a good case on merits. 

1 Like

Kumar Doab (FIN)     27 May 2013

 Mr. Hemang has given valuable advice. Kindly follow it.

It shall be appropriate if the reply is structured and drafted by a lawyer.

As per your post it seems that company has breached the agreement.


Apparently the company wants to apply all kinds of tricks to extract or extort the monies written in the bond/service agreement signed by you, without entering into litigation.

Do you have copy of this bond?


Is it mentioned in the bond that company shall train you for………………..and expects you and you have agreed to serve the company for……….years?


Did you ever submit in writing under acknowledgment; that you have not been provided any induction training (to familiarize you with products, processes, machines, technology, operations, etc of the company), and training to run the products, processes, machines, technology, operations, etc of the client in whose office/plant etc you have been deputed to handle the work of the client from day1 or from dated………………..


Did you travel abroad/offshore? Who sent you offshore employer or client? Did the company issue any transfer letter for offshore placement, and bear the cost of visa/travel/stay etc?

Did you undergo any training at offshore location or work and generated revenue/profit for the company…………?


Did you return to India and resume duties?


Did you submit resignation and was the resignation accepted and FNF, relieving issued?

 It is felt that your residence is a private property and company can not send private recovery men to your place and summon your father? If it wants it may pleased to file a recovery suite.


You may show all the documents, give inputs to your lawyer, and proceed under the expert advice of lawyer specializing in such matters.

In the meantime you may go thru the publications.You may find these useful.



Attached File : 354554141 417759075 validity of employment bonds.pdf, 354554141 background paper.pdf downloaded: 79 times
1 Like

akkiraj mhalunge (engineer)     30 May 2013

It was not mensioned in bond that company will train me for ___ period, but its stated that they will train me for the sake of job...

I have submitted that induction training was not given to me, and even i gave me 0 marks in the self assesment in the head of training... But I dont have a copy of that...

I was never sent to abroad or to any other city...

Client was based at same city...

My resignation was not accepted, I would say I dont have any copy of that too... But i was in the probation period while leaving the job...

I dont want to increase the mess and I cant clean the things right now as i have my PG exam and project on priority...

Plz tell me that can company file a case against me?

Adv k . mahesh (advocate)     31 May 2013

company will on the grounds breach of contract of the agreement showing that they had spent so and so amount on you to place you on clinet office 

you to talk to the concerned person and take some time out of mess and prepare your exams and after your exams meet a local lawyer and explain  and send a reply  notice to them stating that within 6 motnhs you left and after one year after leaving the job preparing for higher studies you cannot claim 

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