Is My Company Bond Legal in India? Seeking Advice on Potential Legal Action

Hi,

In August 2007, one company filed my H1B visa for the US, and I got it stamped in October 2008. I did not travel to the US and did not join the company since they did not have any work for me. At that time, I signed a bond with that company. The bond was on the company letterhead, and it states that if I fail to join that company's US office or leave the company before one year (after joining them), I have to pay $10,000.

In February 2008, I joined their Bangalore center even though they did not have any work for me. I waited for some more time, but they did not find any work for me. So, in July 2008, I decided to quit the company. I spoke to my manager, and now they are telling me that since I did not join their US office, I have to pay them $10,000.

I seek advice on whether this bond is legal in India. If yes, can they still go ahead and file a case against me if I don't pay them $10,000, and on what basis can they file a case against me? Is there any other way out?

Best Regards,
Sandeep Gor

Dear Sandeep,

The bond should be executed on a non-judicial stamp paper only. Executing on any other type of paper is illegal and void.

Regards,
Rajesh

No, the document you have signed is not a bond, and it is not legal. They cannot file a case against you.

Hi Rajesh, Sreelatha,

Thank you for the clarification. Even if the papers are legal, what should be the scenario in terms of logical aspects? I mean, suppose this is a legal bond, even then, based on the bond conditions, can they file a case against me if I fail to pay them the obligated amount?