anshu sahu
Asked August 29, 2016

Salary, employment laws and bonds

  • 1 Answer
  • 227 Views

Dear sir, i am a graduate student from Rustamji institute of technology BSF Academy Tekanpur. In my college a company name capital height was coming for placement. This is a advisory firm company and gives offer to work with capital height on salary Rs.25000 per month but when i was joined it they reduce the salary to Rs.6500 only that's why i am decided to resign that company. During my joining they provide me the salary account in HDFC bank with chaque book and take a blank chaque from my book with my sign. They send me a notice ,what should i do please provide me some advise.

Answer 1

The first step you should take is sending a ‘Stop Payment’ letter to the bank, addressed to the Bank Manager. In this letter, request the bank to stop encashment of the cheque issued to the company, for which you should provide the bank with:

  • The cheque number of the issued cheque; and
  • The date mentioned in the cheque; and
  • The name of the payee, i.e., the name of the person or company to whom you have issued the cheque.
  • If you have issued a blank cheque, including only your signature, without the date and payee’s name, then mention this in the letter and request the bank to cancel encashment for the cheque number in all cases, irrespective of the bearer’s name. It is advisable that you personally visit the bank as well, to ensure the receipt of the letter and to get a confirmation from the bank’s side regarding the cancellation of the cheque.

    Once this is done, you can sue the company for breach of contract. There are 3 essentials for a valid contract:

  • Proposal. According to S. 2(a) of the Indian Contracts Act, 1872 [1]proposal refers to the willingness of a person to do something, with a view to obtaining the assent of that other person. In this case, the company had offered or proposed a salary of Rs.25000 per month. If this offer was communicated to you via an appointment letter then it would be solid proof to establish an offer or proposal on the part of the company, signifying its willingness to recruit you as an employee, with a view to obtaining your assent for the same. However, if it was an oral communication, and you have any witness to establish the same, then also it would be treated as a valid proposal.
  • Consideration. Consideration is an act by the promisee, in accordance to the desire of the promisor or the proposer, in accordance to S. 2(d) of the Contracts Act[2]. In this case, your act of joining the office is an act done by you, in accordance to the implied desire of the company, recruiting you. Hence, a valid consideration too exists in this case.
  • Acceptance. As per S. 2(b) of the Contracts Act[3], when the person to whom proposal is directed, signifies his assent, it is referred to as acceptance. In this case, your joining the company is a direct significance of your assent to the extended proposal.
  • After the completion of all these steps, a contract can be said to have completed between you and the company. It is receding from its proposal by reducing the proposed salary to Rs. 6,500 after communication of your acceptance; this is prohibited as under S. 5 of the Contracts Act[4], which lays down that revocation of proposal is acceptable before the communication of acceptance as against the proposer, but not afterwards. Communication of acceptance as against the proposer is complete as soon as such communication is initiated by the acceptor, as provided by S. 4 of the Contracts Act[5]. In this case, thus stage has far been crossed and hence, the company cannot revoke its proposal.

    The major clause of the contract being your appointment, you can file a civil suit against the company on grounds of breach of contract. You can demand compensation for the damage or injury caused by such breach under S. 73 of the Contracts Act[6].

     

    [1] Available at: https://indiankanoon.org/doc/831280/

    [2] Ibid.

    [3] Ibid.

    [4] Available at: https://indiankanoon.org/doc/931937/

    [5] Available at: https://indiankanoon.org/doc/1332830/

    [6] Available at: https://indiankanoon.org/doc/339747/

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