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'Personal reasons' are the oft-quoted reasons for skipping an Employment contract/agreement--so much so that it's lost it's sanctity--where professionals just use it to join another better-paying offer AFTER they have signed/accepted the earlier Offer. No surprise that you got the legal notice.
This is not to say that you are lying/bluffing. But when you live in a world where the well-intentioned means/reasons are often misused, you have to be extra-careful when you use such facilities.
You should have discussed with them WITH EVIDENCES of your personal reasons earlier & convinced them before itself. I presume you haven't or at least haven't done sufficiently enough for them to be convinced. When one is in a position where his/her commitment is being effected due to other/personal reasons, it isn't enough to take the stand that 'personal is personal--can't reveal'. Some explanation is definitely called for.
Suggest you to call them & discuss/explain your side of the story. And also, pl note that some reasons that are acceptable in India may not be acceptable abroad [for eg., family/parents aren't agreeing, etc].
Another aspect in this is: Companies outside India take a commitment very seriously unlike those in India, where applicants carry multiple Offers, give Acceptances to ALL & then take their own sweet decision with little thought of the consequences for the other companies [obviously one can join only one company] could entail.
We speak that India is a land of Vedas, etc, etc--but now have to learn of honoring one's word/commitment, come what may, from other nations.
From India, Hyderabad