Regarding bond signed with the university
6 months ago
I signed a bond on Rs. 100 stamp paper with my university to serve the university for a term of 5 years after my return from pursuing PhD course or else I will have to pay my salary received. The university paid my salary during my study leave for 3 years. I have completed 3 years after returning from my PhD and I have got job elsewhere on a higher scale and position. Will the bond be still be valid in this case if I join the other university at higher position?
A.Dear Client,
The validity of Employment bonds can be challenged on the basis of Section 27 of the Indian Contract Act,1872 which prohibits any agreement in restraint of trade and profession. The law states that an agreement (employment bond) will be illegal only if it restrains someone from exercising a lawful profession/ trade/ business. As per the mandate of Section 27, any terms and conditions of an agreement that directly or indirectly compels the employee to serve the employer or puts a restriction on them joining the competitor or other employer is not valid. The employee has the right to resign from the employment even if he has agreed to the employment bond to serve the employer for a specific period of time. In the case where the employer is able to prove that the employee is joining the competitor to disclose the trade secret then the court may issue an injunction order restricting the employee from joining the competitor. No employer can deprive an employee of a better career opportunity that infringes the fundamental rights of a citizen guaranteed under the Constitution. Further, Section 73 of the Contract Act, 1872 makes provision for unliquidated damages (not stipulated in a contract), Section 74 deals with liquidated damages (stipulated in a contract) and no compensation is attracted for mere breach of contract u/s.73. 74 of the Act unless such breach resulted in an actual loss or damage to the opposite party(University). So, if the University takes any legal action against you for recovery of compensation for breach of contract, then reach out to an Advocate for guidance and steps to defend the claim suitably after serving a legal notice to the University.
The validity of Employment bonds can be challenged on the basis of Section 27 of the Indian Contract Act,1872 which prohibits any agreement in restraint of trade and profession. The law states that an agreement (employment bond) will be illegal only if it restrains someone from exercising a lawful profession/ trade/ business. As per the mandate of Section 27, any terms and conditions of an agreement that directly or indirectly compels the employee to serve the employer or puts a restriction on them joining the competitor or other employer is not valid. The employee has the right to resign from the employment even if he has agreed to the employment bond to serve the employer for a specific period of time. In the case where the employer is able to prove that the employee is joining the competitor to disclose the trade secret then the court may issue an injunction order restricting the employee from joining the competitor. No employer can deprive an employee of a better career opportunity that infringes the fundamental rights of a citizen guaranteed under the Constitution. Further, Section 73 of the Contract Act, 1872 makes provision for unliquidated damages (not stipulated in a contract), Section 74 deals with liquidated damages (stipulated in a contract) and no compensation is attracted for mere breach of contract u/s.73. 74 of the Act unless such breach resulted in an actual loss or damage to the opposite party(University). So, if the University takes any legal action against you for recovery of compensation for breach of contract, then reach out to an Advocate for guidance and steps to defend the claim suitably after serving a legal notice to the University.
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A.Dear
The validity and enforceability of a bond like the one you described can depend on various factors, including the specific terms and conditions of the bond.
so kindly look into the conditions mentioned in the bond.
Regards
The validity and enforceability of a bond like the one you described can depend on various factors, including the specific terms and conditions of the bond.
so kindly look into the conditions mentioned in the bond.
Regards
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