arbitration

The company is right in claiming Rs.1 lakhs from you as per the bond. 

But it appears from your case that you had sought transfer to chennai which has not been attended to or replied by the company.  Hence there is fault on the part of company and as such subsequently terminating you from the job becomes wrong on the part of company without considering your request of transfer.  Since the company has failed to reply your transfer application you can very well say that there is fault on the company and termination is invalid.  This will be a good ground for you to oppose the termination as well as the arbitration proceedings.  If you properly appraise this ground before the arbitrator certainly you have a good case to win the arbitration proceedings.

Best of luck.

I agree with Mr.Krishnaa do appear before arbitrator through a good lawyer,

is it mandatory to appear for the arbitration with a lawyer,cos i heard that some arbitrators do not encourage lawyers during arbitration.In any case i am will to pay the bond amount or even resume work with the company cos i am still unemployed and dependent after this incident.