Civil case regarding money recovery for break of corporate employment bond
Lawyer Answers
DLA & Associates
Ishan Ganguly
Immediate Actions
Check the Timeline: Look at the summons for the Returnable Date (the date you must appear in court). Missing this can lead to an ex-parte decree, meaning the court may rule in favor of the company simply because you weren't there. Do Not Ignore It: Ignoring a summons does not make it go away; it fast-tracks the company’s ability to freeze accounts or attach property later. Gather Your Paperwork: Collect your appointment letter, resignation acceptance, full and final (F&F) settlement statement, and all email correspondence regarding your exit.
2. Common Grounds for Defense
Depending on why they are claiming the ₹3,90,000, your defense might include:
Unreasonable Training Bonds: Indian courts (under Section 27 of the Indian Contract Act) generally do not allow "penalty" clauses. An employer can only recover the actual expenses incurred for specialized training, not a random, exorbitant amount.
Notice Period Calculation: If they are claiming notice pay, you can defend by showing you served the notice or that they waived it in writing.
Duress: If you were forced to sign a bond or agreement under pressure without a copy being provided to you.
No Actual Loss: The company must prove they suffered a specific financial loss of ₹3,90,000 due to your actions.
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