Compensation in lieu of notice period?

I was working with Vfone India Services private limited (International BPO). During my employment I raised a request to resign from my post of Executive from the company. My team leader asked me orally to serve for the notice period of two months though employment contract has clause for notice period of 1 month only or in lieu of salary. Upon several occasions I expressed my willingness to resign after 1 month notice period but they kept on insisting me to serve a notice of 2 months. One day even my team leader asked me to send an email to him confirming that I will leave company only after giving 2 months notice. As I needed that job at that time I sent an email to my team leader. For seven months I served the company with wonderful ratings yet they kept on insisting me to serve 2 months notice. In the 8th month suddenly my performance went down, and during a team meeting my manager used very harsh words for me like thief, decoit etc. Therefore, I suddenly stopped reporting to office from next day. Am I liable to pay compensation to the company?