Legal Question in Banking Law in India

I have an agreement with my past employer for 2 years or 2.5 lakhs, in case i leave company before 2 years and given a cheque of bond amount to my employer. Now, if the cheque bounces what will be the legal implications against me? if they go to court, will they have to prove that they have spent this much amount on my training and other things?


Asked on 4/02/11, 12:34 pm

1 Answer from Attorneys
J. Radhakrishnan independent Practice

In case the employer presents the cheque and it bounces and he issues a notice to you to pay up the amount, you must promptly give a reply that the cheque was not given in discharge of any debt due to the payee, but was only in terrorem to keep you in the job and is vitiated as a contract in restraint of trade, unlawful and cannot be enforced. Take the assistance of local lawyer in sending a proper reply and later defending you in Court if the payee prosecutes you under Sec.138 of the N.I.Act.

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Answered on 4/02/11, 9:57 pm


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