Please help me understand the legal repercussions of breaking the following service bond:
Appointment Letter
1. Your appointment will be as an Officer on probation with a monthly salary of Rs XYZ.
2. The company’s right in law to take any action against you and/or to recover any dues from you, and/or claim damages, if any, from you are expressly reserved. This shall not be affected or deemed to be waived by any reference to the service terms and conditions, the rules and regulations of the company, or otherwise.
3. At the time of your reporting, you shall mandatorily submit to the company a service bond (strictly as per the draft enclosed) to serve the company for a minimum period of two years, duly executed by you and solvent sureties on a stamp paper of Rs 100. The bond executed by you shall be duly notarized. Execution of the service bond shall automatically imply your acceptance of all the service terms and conditions as well as the rules and regulations of the company.
4. During or after serving the bond period, in the event of your resigning from the services, it shall be mandatory for you to serve a minimum of three months' notice in writing or pay an amount equivalent to three months' salary in lieu thereof to the company. The appointment letter and especially this clause shall be read in addition to and not in derogation of the service bond to be executed by you.
Service Bond
This service bond is executed by Mr. X in favor of the company Y on [date].
Whereas, Mr. X is selected by the company Y to be appointed as an officer on probation for a period of one year, on a basic salary of XYZ and other allowances as per rules in force from time to time.
Whereas Mr. X has agreed to serve the company for a minimum period of two years from the date of joining, which includes the probation period.
And whereas the company felt it necessary that Mr. X shall execute a bond in favor of the company for serving a period of two years from the date of joining, in view of the cost incurred by the company in respect of the process of selection, training, induction, etc.
And, whereas Mr. X has also agreed and undertaken to execute a service bond in favor of the company under the terms and conditions mentioned herein.
And whereas, Mr. A and Mr. B have agreed to stand as sureties for Mr. X. Both sureties have executed this bond with the knowledge that in the event Mr. X fails to fulfill the obligation under this bond, then both sureties jointly and/or severally indemnify and hold harmless the company for the loss/damage/expenses, etc. that the company has incurred or will incur due to the failure of Mr. X to fulfill the obligation under this bond.
Now this service bond witnesseth as herein under:
1. The company shall appoint Mr. X with effect from the date of joining on the basic salary of XYZ, in the grade of so-and-so, and such other allowances admissible under rules.
2. The said Mr. X agrees that he shall serve the company for a minimum period of two years.
3. The said Mr. X has agreed and hereby agrees and undertakes that in the event he leaves/resigns from the services of the company during the subsistence of this bond, and/or he makes it obligatory or necessary on the part of the company to terminate his services for any reason whatsoever, then he shall pay the company liquidated damages of Rs 2,00,000 or 3 months' gross salary, whichever is higher. Mr. X also agrees that the company shall have a lien on all amounts due to him from the company and the company shall be entitled to exercise the same in the event he fails to fulfill his obligation under this bond.
Regards
Appointment Letter
1. Your appointment will be as an Officer on probation with a monthly salary of Rs XYZ.
2. The company’s right in law to take any action against you and/or to recover any dues from you, and/or claim damages, if any, from you are expressly reserved. This shall not be affected or deemed to be waived by any reference to the service terms and conditions, the rules and regulations of the company, or otherwise.
3. At the time of your reporting, you shall mandatorily submit to the company a service bond (strictly as per the draft enclosed) to serve the company for a minimum period of two years, duly executed by you and solvent sureties on a stamp paper of Rs 100. The bond executed by you shall be duly notarized. Execution of the service bond shall automatically imply your acceptance of all the service terms and conditions as well as the rules and regulations of the company.
4. During or after serving the bond period, in the event of your resigning from the services, it shall be mandatory for you to serve a minimum of three months' notice in writing or pay an amount equivalent to three months' salary in lieu thereof to the company. The appointment letter and especially this clause shall be read in addition to and not in derogation of the service bond to be executed by you.
Service Bond
This service bond is executed by Mr. X in favor of the company Y on [date].
Whereas, Mr. X is selected by the company Y to be appointed as an officer on probation for a period of one year, on a basic salary of XYZ and other allowances as per rules in force from time to time.
Whereas Mr. X has agreed to serve the company for a minimum period of two years from the date of joining, which includes the probation period.
And whereas the company felt it necessary that Mr. X shall execute a bond in favor of the company for serving a period of two years from the date of joining, in view of the cost incurred by the company in respect of the process of selection, training, induction, etc.
And, whereas Mr. X has also agreed and undertaken to execute a service bond in favor of the company under the terms and conditions mentioned herein.
And whereas, Mr. A and Mr. B have agreed to stand as sureties for Mr. X. Both sureties have executed this bond with the knowledge that in the event Mr. X fails to fulfill the obligation under this bond, then both sureties jointly and/or severally indemnify and hold harmless the company for the loss/damage/expenses, etc. that the company has incurred or will incur due to the failure of Mr. X to fulfill the obligation under this bond.
Now this service bond witnesseth as herein under:
1. The company shall appoint Mr. X with effect from the date of joining on the basic salary of XYZ, in the grade of so-and-so, and such other allowances admissible under rules.
2. The said Mr. X agrees that he shall serve the company for a minimum period of two years.
3. The said Mr. X has agreed and hereby agrees and undertakes that in the event he leaves/resigns from the services of the company during the subsistence of this bond, and/or he makes it obligatory or necessary on the part of the company to terminate his services for any reason whatsoever, then he shall pay the company liquidated damages of Rs 2,00,000 or 3 months' gross salary, whichever is higher. Mr. X also agrees that the company shall have a lien on all amounts due to him from the company and the company shall be entitled to exercise the same in the event he fails to fulfill his obligation under this bond.
Regards