Article 19(1)(g) of Constitution of India confers fundamental rights on the citizens of India and this Article allows the citizens the right to practice any profession or carry on any occupation, trade or business subject to reasonable restricition in public interest.
Thus any restriction on this fundamental right of any citizen goes against the protection granted and guaranteed in the Constitution.
Tell then that their this action can hence be challenged.
Section 27 of Indian Contract Act, 1872 states:
Agreement in restraint of trade void:
Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void.
Other similar attributions for your study purpose are:
1) Bond.. Is It Legal In India????? - Bond Breaking
2) Employment Bond/Service Bond - It Services
3) Bond system : Does it prevail in India?
4) Employee Bonds....Validity & Applicability
5) employment bond _ very urgent - Labour & Service Law Experts - Law, Lawyers, Advocates, Law Firms,Legal Help, Legal Experts,Judgements,Law Help, Indian Lawyers
6) Is this kind of employment Bond is Legal in India? - Labour & Service Law Forum - Law, Lawyers, Advocates, Law Firms,Legal Help, Legal Experts,Judgements,Law Help, Indian Lawyers
Please note that service agreements or bonds by itself are not illegal unless there was a forceful signature obtained.
Read: venghatsrinivas: Is employment Bond valid in india?
Weight your pros and cons and accordingly proceed. I would like Senior members as well to contribute. Legal advisors can be of real help.
22nd May 2013 From India, Mumbai