Legal Question in Banking Law in India

Re: Bond Broken

give them notice that they are not paying you so you will be compelled to stop working for them

Re: Bond Broken

Yes,it is possible.Contact personally with all details and relevant documents.You are required to act promptly.professional charges shall apply.

Re: Bond Broken

yes .. you have a fair chance!.. give a stop payment order in advance

and also you can send a legal notice in advance ... stating that they have failed to pay the stipulated salary .. and the arrears of salary is due hence demand it to be paid! ... and that he cheque issued has no liability and hence it is nt valid... and demand the cheque to be returned to you ...

Re: Bond Broken

Only cheques given in discharge of liability when dishonoured would attract Sec.138 N.I.Act. Of course, there is a presumption that every cheque is in discharge of a liability unless the contrary is proved. In your case, the cheques have been given by way of security for the bond amount, in case, you breach the bond conditions. Since the contract is mutual and you say that the company has failed in its obligations, you can issue a notice to the company, that the cheques issued are devoid of consideration and they shall not be presented. You must also give notice to your bank countermanding the cheques in writing in advance. If the company proceeds by way of prosecution, you have to defend the same with the above objections, duly assisted by a local lawyer well versed in such practice.