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Ashish Joshi   17 January 2023

Indemnity Bond

Respected sir

My current employer didn't inform me to sign indemnity bond before joining. Post joining, I have been asked to Sign indemnity bond on stamp paper of Rs. 300 on 1st day of joining.

Since, nobody known to me in new place, I didn't protest to sign and did sign on indemnity bond stamp paper, if i breach contract within 1 year I need to pay penalty.

Pls let me know what will the consequences if I breach contract before it gets matured / laps. On what grounds it may turn as Void.


Learning

 4 Replies

krishna gautami   17 January 2023

If the bond is signed by you, the consequences would be no can get it nullified as it was on stamp paper ( legally notarized) but yes you can approach the court with your concerns with the help of an advocate.

Hope this helps.
1 Like

Ashish Joshi   17 January 2023

Would like to add, There is no any monetary investment or any training provided to me.

krishna gautami   17 January 2023

yes, even if any kind of traning or any monetary investment has not been occurred. You cannot claim that you have not signed it. You have to clearly explain the reasons for the said thing done by you before the court and on the basis of courts discretion you can be accordingly granted relief or so. Also, if the contract is for a year then for some immediate reasons you can have a word with authorities of the firm. if they allow you can opt with buy out notice period and leave the firm.

Also, it would be more advisable for you to get in touch with an advocate for clear visuals on the same.
1 Like

Advocate Bhartesh goyal (advocate)     18 January 2023

Since the indeminity bond is signed by you so are bound by  it but you can say in court that the same was got signed by me in pressue/influence and coercion to get declare it void.

1 Like

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