Legal Question in Banking Law in India

Cheque given to Employer !

I have joined a software company.While recruiting, they collected a cheque for Rs.2 lakhs (without date) as security. They have not increased my pay even after one year as agreed by them. Now, I want to quit . They are threatening that I should pay the amount of Rs.2 Lakhs .They have utilised my services during this one year duly outsourcing my services to a client. They earned double my salary with my services .Please tell me the course of action to quit the organization .I can't pay the Cheque amount to them.


Asked on 3/19/09, 5:04 am

3 Answers from Attorneys

J. Radhakrishnan independent Practice

Re: Cheque given to Employer !

Issue a demand notice through your lawyer setting out the full facts regarding the cheque, also resigning from the company, stating that the cheque lacks consideration and that encashment of the cheque would be in restraint of trade etc. Inform the Bank also not to honour the cheque. As litigation is prone, take the assistance of a local lawyer instead of posing the question in this forum.

Read more
Answered on 3/19/09, 10:18 pm
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Cheque given to Employer !

Your facts may be insufficient for appropriate reply which may depend upon your contract of employment with regard to notice before leaving and other conditions of service.

a) You should demand the check back;

b) You should demand the difference in pay if they had "agreed" for any enhancement.

c) You may inform them of your intention to resign and serve them a notice for one or two months if there is any such provision in your contract.

(d) If you cancel the cheque by giving them in writing and raise a dispute by demanding the difference of salary amount - actual payment and the 'agreed enhanced payment', you may be able to dispute about your liability arising out of the cheque which may be a good defence against cheque bouncing case, if any, that may be filed by your employer.

Read more
Answered on 3/19/09, 7:13 am
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: Cheque given to Employer !

depends on full facts of your case.

Read more
Answered on 3/19/09, 10:49 am


Related Questions & Answers

More Banking Law questions and answers in India