Company has filed a cased against me with below points.
Company is asking judgment and decree
a) For a sum of Rs. 32.00.000/- against defendant as liquidated damages along with interest thereon @6% per annum from the date of filling of the suit till realization in full.
b) To restrain Defendant from joining the services of any other organization engaged in the same field as the company / Competitor and or setting up a competing business for the remaining period of the non leaving agreement till end of June 2013
c) To restrain defendant from divulging or misusing any confidential information in his possession with regard to the activities whether manufacturing or ortherwise, of the company.
d) Enquiry into unlimited damages suffered by the company and decree for the same, as found dude upon such enquiry.
e) Award costs of the suit;
f) Such other order(s) / relief(s) as this Hon`ble court may deem fit, in the interest of equity and justice and in the circumstances of the case.
Our lawyer prepared reply for this court summons. This forum can help me to come out of this situation.
Thanking you in advance
24th May 2011
After going through your employment contract, its very clear that you have to pay Rs.32,00,000/- to your ex employer.
Its a well drafted employment contract, very clearly expressed on all points and not vague to give a chance to the court to interpratate the words in other way.
I would advice you to settle the issue out of court (directly with yr ex employer). Talk to them, request them to settle the matter for some lesser amount.
If you fight the matter in court..possibility is that at the end of the day (may be after 5 years) you would lose the case and that time your ex employer may ask for interest on Rs 32,00,000/- also.
24th May 2011 From India, Pune
24th May 2011 From India, Kannur
I would like to give more information about my situation.
Company has deputed to his head quarter in the name of training and promised me that after my delegation promote me a Project Manager once I come back to India.
I joined this company in 2003 after 4 years of working India Company has deputed to head quarter to execute normal work.
I have attended few in-house training programs with head quarter employees but all training thought in German not in English which I cannot understand. This is just for name sake training program.
The training expenditure is only estimated during preparation of agreement not actual cost, I have found information in this forum that the allowance will be a part of wages it will not come under training expense.
Company has put me on a real project in onsite to work below my designation so that they can receive money from head quarter. Indian company has not paid any money for my training to head quarter.
As per agreement I have to work in head quarter for 3 years but Indian company has called back to India for 8months to work for local projects.
My question is now company has not broken agreement, the court will not ask?? My lawyer told me that court will ask a strict proof of expenditure spent on training to recover damages.
24th May 2011
If your overseas training was a full time training and not on job training then the allowances paid to you would be treated training expenses and not as wages.
Regarding training in German language and not in English will certainly not be an excuse to you as you should have pointed out this problem to the employer that time only and not after completion of training and now making it an excuse to shift the job.
The strong point in your case is the company posted you at a lower rank and cadre wile on on site project. This action of the employer will certainly go in your favor.
Your lawyer is right that the court will ask a strict proof of expenditure spent on training to recover damages.
Few years back Shipping Corporporation of India had also filed a damage case against one of its employee as per the bond signed between two parties and the court gave decision in favor of the SCI.
It would be always wise for you to go for out of court settlement with your ex employer by paying them a reasonable sum of money and certainly not what they are claiming because there is no end of judicial litigation...from lower court to high court then supreme court.....keeping you 10 to 15 years in stress.
If you calculate the lawyer fees alone from start to end (lower court to high court then supreme court) you will be shocked.
24th May 2011 From India, Pune
Thank you for your valuable suggestion.
Actually it is not a full time training, it’s clearly an on job training mentioned in their court summons. I also had complete period of time sheet, it clearly state on which projects I have worked during this period.
Company has received a payment for my work from Head quarter but they are hiding this information. If I am in training program then Indian company has to pay to Head quarter but here it is in a opposite way.
I have already given my final settlement approx amount of 6 laks to company but now they are threatening to recover more. Company want to trouble and show what will happen if you break agreement to
Currently HR using agreement has a tool to retain people and now want to show how they trouble if you break agreement to rest of the employees.
I have requested the company for 3 months to promote what they have promised; unfortunately I have received very bad answer from dept. head. Company taken me granted and clearly said that I have to work 3years more to get that position.
Company is not interested to discuss further with me. After gave up 6laks from hard earn money now I am paying lawyer fees,
You are right the fees are really expensive and beside company harassing from last one year but there is no other way to come out of this situation.
I was working as a Team leader but in head quarter made me to work as a Draftsman (Draftsman position I had 7years back when I joined this company)
In between they called back to India for a period of 8months and it is not mentioned in agreement.
24th May 2011
Well i can understand your mental status.
There are few strong points which are in your favor.
If you can proof that the company has received a payment for your work from Head quarter during training, it would help you a lot in the court.
As you have mentioned that you were working as TL but back in India you were posted a Draftsman, which is a certainly demotion....this point is again in your favor.
The company didnot promote you as promised ...will go in your favor.
I would rather suggest you that your lawyer should file a written proposal before the court for a compromise by paying a reasonable amount (Rs. 5 lacs) to the company. Court will ask the company lawyer for a rejoinder.
Possibilty is that compromise formula will not workout at the lower level court as lower courts have not much guts to work this way.
Wait for company's view on this and if the refuses outright then you can file a Quashing petition before the High Court to quash the company's suit filed against you.
If your Quashing petition is admitted in High court then the proceeding at the lower court will be stayed and you will get immediate small time relief.
During the Quashing proceedings in the High court you again request for a compromise by paying a reasonable amount to the company and fair possibilty is that your compromise formula may work out here.
25th May 2011 From India, Pune
Thank you very much for your information. I will try once again with company to compromise with reasonable amount.
If they are ready to compromise then I would be very happy to come out of this situation.
Now my lawyer has prepared an answer to summons received last month. Once it’s done in court I will discuss with our lawyer for compromise with company.
Hope everything will go well.
25th May 2011
Thank you for your feed aback and our lawyer has submitted written statement to court summons received from Company.
Now they have put an objection to our written statement and taken 2 months to reply back.
What will be the next step in court?
When will argument start?
When I should present in court?
In agreement clearly stated city court but now they have filed a case in a different district civil court, does it impact anything?
Thank you in advance
31st May 2011
Let them file the reply. You have to wait for a long time to see the arguments in the court. Unfortunately our judicial process is very slow particularly the lower courts.
You may get exemption from personal apperance in the court.
1st June 2011 From India, Pune
Please request for referring the matter to mediation or Lok Adalat and go in for a settlement .Please understand the Judge is an unbiased person who will understand your plight if you explain it well .Law always protects the weak and needy .
15th September 2011 From India, Madras