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Author Topic: breach of service bond and company filed civil & criminal case  (Read 542 times)

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Dear Experts, I was working for a company in Delhi, as per appointment letter it says i have to furnish a service bond for three years and i will be in a probation period for six months. i joined happily and started working in the company with very good performance and bond was not executed more than a year. Someone from the company left and they asked to sign the bond after a year for me and i signed it. Since i worked for company more than 2.6 years and no increment was given to me despite of very good performance, every time i asked them an increment they said i have furnished bond and i can’t leave job till i complete three year. i was so frustrated and i have got new born baby, expenses increased and i resigned the organization 6 month prior to bond period finished. They send me a notice through a lawyer and asking bond amount 3 lack or they file a case, i replied to them through a lawyer stating loop holes in their allegation and it will not stand for a long so kindly don’t do this, They filed a civil suit against me in court and changed the first page of appointment letter condition and made it in full of their favor, since the only last page of appointment letter was signed by me and company so they did it. They made a complaint against me in police station that i have submitted the forged appointment letter in the court and police started harassing me by saying it is a criminal offence and i might go to jail one day. The said this in court that i furnished the forged appointment letter in court also. My lawyer was attending the hearing and i secured a job in abroad and give power of attorney to my father so that he can attend the proceeding on my behalf. As i came bank India they give a summon and filed a criminal case against me on above forged document ground. Very Important- When i joined their organization i bought a new car at the very first month of my joining the company and give my original appointment letter as a proof of income to secure a car loan. As a witness my lawyer already submitted the statement and a certified copy by bank of my appointment letter in the court as proof. Since they have 100% forged the document and changed it even after 2.6 years issuing the original to me. Now i am fighting this case from last almost 5 years and been harassed a lot by police and company. I had to go out for job since they are very rich and politically influence people and made it so hard to me to work in Delhi. My question is that is my proof is strong enough to save me at the end, and what all option i have to pressurize them. Now since i have invested more 3 laces in court proceeding paying high fee to lawyer etc. i don’t want to quit now rather want to teach them a lesson. Since they took up my case to teach rest of staff a lesson that if they leave what will happen like me.  Is there anyway where court can send my original paper and their fake paper for forensic test and examine the age of the ink for proof? or is the bank statement is enough to defend me... kindly guide me. In case i am unable to convey my point or any one of you want any other details please write me, i have very strong faith in lawyers club and their suggestion. Thanks 
« Last Edit: October 23, 2018, 04:59:14 AM by admin »

Offline kalaskarkk

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Re: breech of service bond and company filed civil & criminal case
« Reply #1 on: October 21, 2018, 09:50:07 AM »
Dear Sir,
While granting liquidated damages under the employment bond, Courts apart from going into the legal injury caused to the employer also take into consideration factors like actual loss suffered by the employer, period of service already completed by the employee under the contract and other conditions, if any, stipulated under the contract. Only after going into these factors, courts determine the loss suffered by the employer to reach a reasonable compensation figure. For instance, in the case of Sicpa India Limited vs Shri Manas Pratim Deb (MANU/DE/6554/2011), the employer incurred expenses, while imparting training to the employee for which an employment bond was executed. According to the bond, the employee was to serve the employer for period of three years or to make payment of rupees two lakhs to the employer. The employee left the employment within two year of signing the bond. To enforce the agreement the employer went to the court, which awarded sum of only Rs 22,532 to the employer as against the compensation amount of Rupess two lakhs stipulated in the contract. While coming to such conclusion, the Court relied upon the law laid down by Supreme Court regarding liquidated damages. The law with respect to liquidated damages have been crystallized by the Supreme Court vide two landmark decisions. First is the decision in case of Sir Chunilal V. Mehta And Sons, Ltd vs The Century Spinning (1962 AIR 1314), wherein it was held that liquidated damages are not in the nature of penalty and can be awarded as mentioned in the contract if loss from the breach of contract cannot be calculated for the remaining period of the contract. Whereas, in the case of Fateh Chand vs. Balkishan Das (AIR 1963 SC 1405), the provision of liquidated damages in the nature of penalty was held to be void, since the actual damages could be calculated and, thus the liquidated damages were held as the upper limit which are to be paid once the actual damages are proved. Since in the present case the damages could be calculated, Court considered the total expenses borne by the employer and the period of service completed by the employee under the contract and thus, divided the total expenses incurred into three parts for three years and awarded the damages for the remaining one year of the employment due to the breach of contract.
Therefore, from the above discussion, it is evident that employment bond stipulating a specified sum as payable by the employee in case of breach of contract is enforceable only if employer has actually spent money on the employee against a promise from the employee that he or she would not leave the employment for the specified duration and has consequently suffered a loss on account of the employee having received the training and leaving the employment before the stipulated period in breach of the employment bond / contract. With the employees in our country free to decide their employment these bonds play an important role to protect the interest of the employer and enable the employer, in appropriate circumstances, to recover the money spent or incurred by the employer in case of an early resignation by the employee.
« Last Edit: October 23, 2018, 04:48:27 AM by admin »

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