2 Answers
Dear Client,
Section 74 of the Indian Contract Act of 1872 states that unreasonable penalty clauses or ‘bonds’ cannot be enforced unless it can be shown that the hiring party has suffered actual loss by the worker’s specific training. The demand of 1.6 lakh rupees was completely absent in your offer letter, and this amount is also grossly disproportionate to the 20,000 INR you get as salary. It is likely to have no legal basis. After this, please ignore all of this and think about your health first. You can involve a labour lawyer to send an official letter rejecting this demand while also formally stating your willingness to pay the buyout amount for the notice period. I hope this answer helps. If you have any further query kindly do not hesitate to contact us. Thank you
Dear client, as per your query, as the ₹1.6 lakh demand is not mentioned in your signed offer letter, it is not enforceable and is probably a threat. As per Section 74 of the Indian Contract Act, employers can only claim reasonable compensation for actual losses incurred (like particular training expenses), not arbitrary penalties. You should put in your resignation by email as you have a medical need for your surgery, provide one month’s notice pay as per your contract, and return all company property with acknowledgement. If the harassment continues or the required documents are not provided, you can file a complaint either through the CPGRAMS Portal or with the Labour Commissioner, as they cannot force you to pay any amount that is not mentioned in your contract. I hope this answer is helpful. In case of further queries, please do not hesitate to contact us.
Thank You.