Yes, they can recover the money . If the court pass order in their favour and they proceed to execute it the court can attach your property irrespective of the fact that you arr living in India or not.
Hope this helps.
Regards
Hi, I worked for an Indian MNC till last year. I was deputed by them to go out to a different country and work for them. I had signed a bond to pay them if I left the company while still being abroad. I recently took up another position and left the company. Now they have sent me an email asking me to pay up. My question is: 1) Can the company move legally ahead to recover money from me? If yes, what am I being made liable for legally? 2) I don't live in India anymore, would this be a problem whenever I return to India? 3) What is your advice in terms of should I be paying this or is it ok to not entertain this request? Thanks.
Yes, they can recover the money . If the court pass order in their favour and they proceed to execute it the court can attach your property irrespective of the fact that you arr living in India or not.
Hope this helps.
Regards
If you have already paid then you are not liable to pay again
No there will be no issues if you stay abroad
Need to check exactly the notice which demands the money from you and decide whether it's legitimate or not
It is necessary to peruse terms of bond signed by you
2) if you don’t pay company can file civil suit in India to recover bond amount
3)if decree is passed against you it would be enforced by attachment of your property
4) amicable settlement is best option
1. The rights and obligations of respective parties are mentioned in the agreement of that Bond. So before commenting on merit of the claim of your company the Bond is to be seen.
2. This is a civil dispute for which there is no problem in making visit to India.
3. Send me the copy of the Bond before I speak my mind on this.
Yes, company can take action against you. If there is NDA and Non-Competent Contract plus Bond, that needs to check what it has been written in it under the terns and conditions, like Termination of Clause, Training or Travelling cost, investment done on you for various expenses like salary, travelling, training, Accommodations etc. They will raise all these types of allegations on you. But only Training amount you're liable to pay rest of the things court vanish it. So whenever they ask you to pay they bond amount ask them bifurcation in details.
1. The company may file suit to recover the bond amount. You have to contest the suit before the court, in case you fail to appear or contest the court may decide the suit ex-parte.
2. As such there will be no problems as it is a civil matter and no criminal complaint in same can be filed.
3. See you may reply there email and further in case if they file suit contest same before the court.
Dear Sir,
You are suggested not to leave any of their email or any other form of communication un-replied. Rather bounce back and accuse that you were compelled to leave the job due to and in compelling circumstances and for the same that company is solely responsible. it is suggested that your such kind of stand will reduce the bond amount and you will be able to settle the matter in lesser amount.
- As per Specific Relief Act, if any employee quits before the notice period, the Employer can only recover the Notice pay, and the Company cannot force to serve the entire notice period.
- Further, the resignation decision is the employee’s decision, and the employer cannot sue for breach of contract, if the employee leaves without serving contractual notice.
- Except, recovery of the said amount, company cannot harm you for the same
- Further, no employer can refused to return the original certificates or to issue relieving letter .If they are doing so, their act is illegal, unjustified and against the fundamental rights of the employee.
- Further , as per the Employment Act, employees have the right to resign at any time, by serving notice or by compensating the employer with salary in lieu. It is an offence for employers to disallow employees to leave their job.
- Further, the employment bond with the negative covenant is valid and legally enforceable, if the parties agree with their free consent i.e. without force, coercion, undue influence, misrepresentation and mistake, but it is not enforceable, if it is either one sided, unconscionable or unreasonable.
- Further, section 27 of the Indian Contract Act prohibits any agreement in restraint of trade and profession.
1. You are only liable to pay notice period , which is mentioned in your offer/appointment letter, and not enough.
2. No , but the said company can file a recovery case against you for the recovery of notice period amount.
3. Indian Contract Act prohibits any agreement in restraint of trade and profession , hence you are not bound to pay .
Good luck and dont forget to rating Positively.
- You can connect me via kaanoon.com , if needed further suggestion.
Yes, you are under oath to compensate the company if violate the bond.
Company can file civil suit of recovery, no problem when you will return but must represented in case otherwise court will pass ex parte order.
Don`t entertain there request and impose resignation on him that due to companies XYZ reasons, you were forced to resign. Also find loophole in bond language to absolved from any liability to pay.
1. You have to pay and should pay to avoid unwanted legal headache but first stop receiving any mail or post at your home town or abroad, on phone and see what they do, if they take any action then ready to pay as it will take time and don't bother you have not committed any fraud or cheating, say for the betterment you switch to another job , not now if need be.
2. Yes recovery proceedings can be initiated but by order of the court they take action against you such as attachment of the property, so tell your family members not to receive any communication from company or court , they should tell the postman that you live abroad.
3. Deal as suggested at no.1.
Yes they may file a case. They may send a legal notice and if you don't pay then they will file a case. Ask the bond amount and litigation expenses.
Yes they may serve summons outside India.
It depends upon what the amount is.
Share details of the amount and agreement and then only the issues can be discussed.
Firstly, the terms and conditions of the Bond needs to be seen to guide you properly.
However, if you defaulted the T&C of said Bond, the company may sue you for recovery of bond money.
If the same is allowed in their favor, they can initiate execution proceedings against your movable & immovable properties apart from seeking your arrest.
It is better and advisable to go for settlement.
Talk to the HR / Company and go for amicable settlement to avoid repercussions.
The above could be WIN-WIN Situation for both of you.
Avoid litigation.
Obviously the company can initiate a legal proceeding against you to recover the amount, but in court they have to prove the actual amount of money spent on you for providing special training.
Initiating a legal proceeding is not a big deal but winning is. Before initiating a legal proceeding, the company is supposed to give you a notice. Please carefully handle and reply to the notice, taking help of professionals/ lawyers, if required
1. Yes company can initiate legal proceedings against you for recovery of bond amount.
2. No there will No problem in returing to India because it's not criminal offence.
3. You need to pay the bond amount otherwise your previous employer can initiate recovery suit and get your assets attached for recovery.
1. Under the Indian Law, the employment agreements with negative covenants is valid and legally enforceable if the parties agree with their free consent i.e. without fraud, coercion, undue influence, mistake and misrepresentation.
Indian law mandates the employment bonds to be “reasonable” in order to be valid.
The validity of Employment bonds can be challenged on the basis of Section 27 of the Indian Contract Act. Section 27 of the Indian Contract Act, 1872 prohibits any agreement in restraint of trade and profession. Any agreement in trade and profession according to Section 27 is void.
2. They may send a legal notice, if not responded they may file a money recovery suit and may hold their grip on the sureties you have furnished.
3. If an employment bond is breached, the employer might be entitled to compensation. The compensation awarded should be reasonable to compensate the loss and should not exceed the penalty, if any stipulated in the contract. The court computes the reasonable compensation amount by computing the actual loss incurred by the employer having regard to all facts and circumstances of the case. Even if the bond stipulates payment of any penalty amount in the event of breach, it does not mean that the employer shall be entitled to receive the stipulated amount in full; the courts shall determine the reasonable amount of compensation to be paid.
You may wait for the company to initiate any action then you can decide based on the circumstances.
1. You have signed the Band and had agreed to pay the Bond amount in case you left the Company while being posted abroad which you have done. Your Company can sue you claiming the amount mentioned in the Band. It is not a criminal matter for which you will not face any problem after coming to India on this issue. However, you might get legal notice and copy of the notice if they file any Money Suit against you.
2. Under such circumstances, it is argued by the departing employee that his fundamental right to work with any company has been impaired by the said Bond for which it's enforcement should be set aside.
3. Sometimes, the amount lost by the Company towards training the employee and for sending him abroad is directed to be mitigated by the Court.