Is employment bond legal in India - convicted and have to pay 3.5 lakhs defaulted then 6 months jail

In the year 2014, I was working with an Indian IT company as a sales executive, where I signed an employment bond for 1.5 years, against which the company took a blank cheque. After only 6 months, due to some family issues, I left the company by just sending an email to HR. Since I broke the bond, the company deposited my blank cheque with the amount of 2.4 lakhs. Due to the account being closed, the cheque got bounced, and the lawyer started sending me demand notices for which I gave no response. Subsequently, the company filed a Section 138 cheque bounce case against me. I lost the case in the district court, and the judge said that I did not submit an email copy to the court, hence I am convicted and have to pay 3.5 lakhs, failing which, I face 6 months in jail. I have now applied in the session court, and the matter is pending there. Due to my poor knowledge and inadequate legal representation, I lost the case. However, I am now seeking advice on possible ways to resolve this matter.

Hi,

If the bond is reasonable and not one-sided, it will be held valid. Since it is a contract between two consenting adults, there is nothing wrong unless proven otherwise. Moreover, your first step was incorrect, and there seems to be very little you can do unless you bring in something that was missed by the trial court. You cannot introduce new points at this stage since it is more of an appeal than the trial itself. You should try to ask for leniency and attempt to get the amount reduced. Better still, you may settle it out of court with its knowledge and ensure that your career is not jeopardized at this stage. There is no point in confronting, especially when the odds are stacked against you. Be practical and let it go for the sake of your career and mental peace.

Thanks and Regards

The case against you, it appears, is not for jumping the employment bond but it is for the bounced cheque, as per provisions of the Negotiable Instruments Act 1881. The very fact that the cheque has bounced is sufficient for holding you guilty in this matter as you did not care to reply to the notices and build up a case. It appears to be too late now to redeem the situation.

You may better approach the employer and try for a settlement rather than prolonging the legal battle and adding to your interest burden.

It's a case of a bounced cheque. You should have canceled the cheque on the day you left the company. Now, here is what you can do:

1- Get a good lawyer.
2- Appeal to the court for leniency.
3- Try to find the email that was sent to HR for resignation.
4- Attempt an out-of-court settlement.
5- Also, try to claim that you did not purchase any service or product from the company, and they were using the cheque illegally. (I don't know if you have already made this claim.)

Please let me know if you need any further assistance.

Hi,

Simple ways.

Inform the court straight away that the cheque was yours and submitted for official records. They misused it, and you did not owe them any money. Also, inform the court that the amount and other details are not filled by you. Inform precisely (voice & tone should be obedient) that you worked for the company and got salaries. You can also defend as a common man with common belief you are afraid to make such crimes and never did anything and for sure will not do in the future also. You should be confident that the broken bond will get you no legal issues.

Hi,

You have a very strong case in your favor, as you rightly said you had a weak advocate. There are various judgments that speak about the legality of the issuance of undated cheques and their misuse, and fortunately, such cases are in your favor. Also, employment bonds are illegal.

Please fight the case in the High Court while seeking criminal proceedings under a criminal writ petition in the High Court. And this time, find a good advocate by paying good money.

Regards,
Octavious

First of all, employment under bond is illegal. It is better to address this point and inform them that you were asked to provide the checks for official record purposes.

Secondly, I have emailed the resignation letter to HR. Let HR intervene in this matter.

There are many companies where HR adopts the policy of a bond, so the employee is bound to leave on a specific approach. This is a selfish approach by the company, and employees looking for better career opportunities lose their jobs because, at the end of the bond period, the company may even ask them to leave.

Why has HR initiated the bond? It may be due to the company's culture or the environment, where anyone joining might leave soon because they are not satisfied. This is a valid point for you to justify.

A good lawyer can help you out.

There are far too many loose ends from the company. First of all, when the cheque bounced, did they give you a written notice after the cheque bounced? On this technical ground itself, the case should have flopped. On what basis have they taken a bond for 1.5 years for a sales executive? Seek legal help. You can get the punishment quashed by the higher court.

Dear,

1. If you have closed the account before the cheque is produced, then your company doesn't have the right to file a suit against you.
2. The bond terms need to be studied in depth.
3. Your advocate was not good, in my opinion.
4. In your first response to the court, you should have included a message or notice about the mail you sent to your HR.
5. Even now, you can pursue the case in the Sessions Court.

I am a Counsellor under the Ministry of Labour and Employment, Government of India. You can get in touch with me at dr.shivakarthick@gmail.com.

Employment bonds are illegal in India, which is a form of slavery that has been abolished worldwide by the International Labour Organization (ILO). India is a signatory to this International Convention. Employees have legal remedies under the Industrial Disputes Act for relief and can seek compensation through the Consumer Forum for misuse of cheques, which constitutes fraud in this case.

Every bond is based on give-and-take in India; only valid, otherwise, you may escape from it. Please share your appointment letter, and don't worry, we will support you. Please share at gcwsngo@gmail.com.

I am sure the employer should not have spent much on you during this period related to training, tours, certifications, etc.

Best regards,
Mohammad Sajid Ansari

As far as your post is concerned, I have identified 2 issues. Each issue is addressed separately below:

Issue No. 1:
Whether the bond was illegal or enforceable?
Answer:
Employment bonds are legal in India; however, they must be executed to safeguard the cost of training imparted to enhance the employee's experience. The key consideration here is whether any training was provided. Merely offering training does not automatically entitle the company to claim bond money. There should be a significant cost associated with the training provided to the employee. Kindly inform us if this is the case.

Issue No. 2:
You did not participate in the 138 case, which was a total foolish move on your part. To navigate this situation, there are several options available based on your actions up to this point. You could challenge the Ex Parte Order, but when doing so, raise an objection if the cheque was maliciously used to gain undue financial benefits. However, this argument may not hold if the claim against you is legitimate. Mediation is a viable approach to resolving the matter. Nowadays, most courts have effective and binding mediation centers. Opting for settlement through mediation is a good choice. I would need more information from you to provide further advice. Feel free to call me.

If you have any additional questions or need clarification, please let me know.