If common person reads between the lines of your post, that person will be able to read something different..
You were on the bench therefore, company was not able to bill your salary to the client. In other words in terms of human accounting, you were liability and not asset to the company. Against this backdrop some employee submit resignation, company should have been more than happy. Rather than that company is forcing you to complete the notice period even at the cost of payment of salary to you. Why loss of revenue is acceptable to the company? This is where lies a catch. Somebody was nursing grudge against you and trying to spike your gun.
It appears that you had strained relations with some senior or top management professional in your company. He/she wants to teach a lesson. Therefore, at this stage, you need to make sure that your exit is amicable, honourable and that too without losing opportunity at hand. To do this, you may ask some senior person or MD himself for the personal interview. Explain to him how beneficial for them your exit it. This is going to be test of your negotiations skills.
The Best Alternative To a Negotiated Agreement (BATNA) would be to have an exit exactly before the joining date and that too without payment of any kind to your employers.
The Worst Alternative To a Negotiated Agreement (WATNA) would be to have an exit by making payment in lieu of notice period.
The middle approach would be to make partial payment.
For achieving BATNA, you may go through books on negotiations skills and prepare narrative. This narrative will have the sequence of the points of negotiation, the choice of the words, the phrases that you will use, mental prepared for the concession that you will give etc. is also important.
All the best!
From India, Bangalore
I agree with Mr. Dinesh Divekar point. I don't really understand why the Company wants you to serve 90 days notice period.
You should find out the answer for the same. Then it will be easily for you to negotiate with the Company.
From India, Chennai