Legal Question in Legal Ethics in India

The limitation period to enforce bond is 3 years, from the date when such bond condition is broken. In this case, it appears that three years period is already over, so even if they file suit, it will be barred by limitation period.

So here are the answers to your question

(1) No need to reply.

(2) Question does not arise

(3) As stated, since 3 yrs is already over, their suit will be barred by limitation, so even if they take to court, their suit will not be maintainable.

(4) No need to panic. Nothing to be urgently taken care of.

Let me know should you require any assistance.

Best Regards

Vivek N Mapara

Attorney

www.vnmlaws.com

25.09.2013

Dear Sir / Madam,

A performance / service bond, being against the principle of natural justice, is illegal and a criminal offence.

1. You should reply to the Company MD citing the facts with reference to terms and conditions contained in your Appointment letter, especially that the performance bond was one sided.

2. In addition to what has been stated in Point (1) above, you should also highlight any contrary or contradictory clauses in your Appointment letter.

3. Yes, the Company on its part, may try its best to compel you to settle the bond amount.

4. You should reply to the Company on the lines cited in points (1) and (2) above.

Regards,