If A Bond Is Signed In A White Paper, Is It Valid? - CiteHR
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Hi all,
I hope i am not in to a wrong section.
Recently my client decided to force the employes [our employes that working in the client sight] to sign a agrement before travelling them to abroad for a project. And they have given a draft of the bond that having 4 pages. Now we are forcing the enployes to singn the bond before thy fly to abroad. What we are doing is we are simply taking a print out and ask them to sing it and give to us.
As I understood if the bond is not in a stamp paper the that bond is not valid. So can anybody suggest me a proper way of signing the bond, even if you are against the bond..... basically i don't support the bond but I don't have any choice here cause client need it.
Thanks in advance,
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Hi Ameen,
Paper bond does not hold any value.The signatures of an employee should be taken on valid agreement made on stamp paper.
This was suggested by our legal department. Only first page of the bond is required to be on stamp paper but signatures are to be taken on every page of the bond.
Hi Renu,
Thanks for your reply.
Then we will be in trouble if sombody decide to quit after returns from their trip.
Is it true, there is no value for that signed papers? please advice me to come out from the problem.
Bond is not the right word It is a service agreement.
A service agreement agreeing to serve an organisation for a particular period of time is valid only if there are inputs from the company.Here, your client is sending them on a project and not for any training. Then it is a business expenses and you can not get a service agreement on this.
If you are sending them for training, then you can get a valid service agreement signed for a reasonble amount for breach. Thr reasonable amount shall be equivalent to travel plus training cost if any incurred by the company. You can not un ilaterally say, he has to pay Rs 10 lakhs etc.
I am not sure about the validity of the agreement signed in a white paper. But i guess, an agreement signed in a white paper is voidable and probably you can make it valid by payting the Stamp fee and penalty . You can check with your legal consultant.
I had joined an event company in June 2015. They made me sign a one year bond which was not a legal paper n asked for a signed blank cheque which they stated as cheque would be deposited if I would damage company's property. Due to bad working environment I left the company in two weeks. They deposited my cheque wid amount 1lac. Their lawyer had sent notices which I refused to pay. They never gave me copy of contract nor appointment or offer letter. They hav filed a case against me in court. They never spent a single money on my training or anything else.please advice.
Firstly bond of any kind is illegal and amounts to unfair labour practice in India. Supreme Court has said that a company cannot stop its employees from joining any other company or even competitor for his better future. Bond and service agreement is bad in law.
For argument sake, even if the company proves that there was a bond then they are only allowed to recover the cost which they actually incurred on the employee say for a special training and nothing more than that.
There is no provisions to ask for a blank cheque from an employee for future damage.
As you said, the cheque of Rs.1 lac which you gave, did it bounce for insufficient fund or did you block it?
Did you reply to the lawyer's notice or just didn't pay. The content of the lawyer's notice is required.
What kind of case they have filed money suit or u/s138 of Negotiable Instrument Act.
Please let me know.
For more info on labour law check my blog www.labourlawhub.com
A contract is a valid contract if there is agreement between the parties and consent is given of free will.
The fact that it is on normal paper or stamp paper is immaterial for the validity of the agreement.
However, under the stamp act, agreements are required to be stamped. That means you use stamp paper, or pay the stamp duty by getting it franked or fixing adhesive stamps (now stopped in most states). If you don't, the document is not admissible as evidence in the court till the time you pay a penalty of 10 times of the stamp duty avoided. Apart from that, there is no actual difference.
Whether the agreement / bond is enforceable depends on lots of factors that can only be decided based only after reading the exact wording
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