Fraud by data entry BPO company & asking penalty

My brother agreed on phone to accept the work given by data entry company but they didn't mention what will be penalty in case work will not be completed.Later they sent an agreement on 20 Rs stamp paper with TnC saying if work not completed charge will be recovered. In agreement, only complay sign is there & brother's name is there(no sign). they are saying you have signed the doc digitally but my brother didn't do anything like this. also he dont know english so that he can understand anything from that agreement. Now company is asking for penalty with legal charge and every week they are increasing charge amount and asking to raise court case if not paid. I can share agreement and other docs with you. please suggest if this can b a problem to my brother?