Tag Archives: Section 73

Draft of Legal Notice for Breach of Contract by Employee





        By Regd. Post/Speed Post (A/D)

                                                                                                                   16 March 2011


Law College Road ,



Sub:   Legal Notice u/s 73 of the Indian Contract Act 1872

Dear Sir,

We are concerned for our client PQR Limited which has instructed us to notify you as under:

  1. Our Client is engaged, inter alia, in the business of manufacturing process control, Automation and Instrumentation products.


  1. That on 26 November 2010, you submitted your resignation letter to the HR Department of our client stating health problems as ground for your resignation


  1. Thereafter, the HR Department duly rejected your resignation letter dated 26 November 2010 as there existed a bond agreement with the company on July 1, 2009 whereby you had agreed to serve our client for a period of not less than 18 months.


  1. Thereafter you, vide your e-mail/letter dated 18 January 2011 informed our client about your discontinuance in service with immediate effect which as a result has hampered our client’s project and also caused them financial loss.


  1. According to your appointment letter you shall be liable to give 90 working days notice in writing to our client which you also failed to do. This is a clear violation of terms of the appointment letter you had signed and consented to at the time of your appointment.


  1. The Bond agreement also contains a clause whereby if our client is constrained from exercising his right due to any default on your part, our client shall be entitled to recover amount so demanded as a liquidated debt from you.


  1. Our Client vide email dated 26 February 2011 informed you that your resignation dated 18 January 2011 was not acceptable to them. Despite several remainders over breach of contract on your part, you have failed to abide by consent terms of your appointment letter.


  1. In the same email, our client has also communicated your liability to pay a sum of Rs 1, 19,340/- (One Lakh Nineteen Thousand Three Hundred and Forty Rupees Only/-) within 7 days of the date of email for the balance of mandatory notice you have failed to serve.


  1. However since you have failed and neglected to pay the amount due within 7 days of our client’s correspondence, our client has been forced to initiate legal recourse.


  1. You are, hereby called upon to pay sum of Rs 1, 19,340/- only, in addition to Rs. ________ as compensation for breach of contract and inconvenience caused to our client within a period of three weeks from the date of receipt hereof, failing which our Client without prejudice to the rights and remedies otherwise available to it, shall be constrained to initiate appropriate proceedings.


For _______

(Name of the Law Firm, LLP in the Space given Above)