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Legality of the indemnity bond and what legal action can be taken


12-Aug-2023 (In Labour & Service Law)
I am employee of a company and I've signed an indemnity bond with the company.The bond consists of 2 pages, first one is Rs 100 printed stamp with red color. Stamp paper on which there is name of the company and description of bond policy and the second one is normal paper on which there are terms and conditions with name & signature of employee. I've signed 2nd page.There is no notary stamp anywhere in the bond. Is this kind of bond valid or is it considered void? Also while joining the company there were few things that were either falsely told to me or not at all told to me. I am willing to resign the company before the bond period is over. When I joined the company, I was given 3 months of notice and after that I am eligible to get experience & relieving letter. Also, the penalty defined on the bond for breaching(leaving before end of 3 months notice period) it is Gross salary of 6 months .Please advice me how i can safeguard myself against anv consequences ?
Answers (2)

Answer #1
504 votes
in this case you need to hire a good lawyer and analyze the terms of the contract. however if you have violated the terms of the contract and broke the bond then the organization has all the rights to take legal action against you. they may file a civil suit for the recovery of money. the best remedy is that you can make a written settlement with them.

Answer #2
752 votes
The said so called latter is not in the preview and defination of indemnity bond. Bond must be registered. any condition against the law is not binding to any of the party so if the management drafted any illegal condition then it is not binding to the party

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