Declining a job after signing offer letter

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2014 Hello friends,

My friend has signed an offer letter of company A, and they evn took a cheque of Rs 50000/- form him. Now he got a good offer from comany B. how can he decline the offer of company a without any issues and get the cheque back?

There is nothing mentioned in the offer letter about penalty for not joining. Infact the offer letter states that if the the employee doesnt joins before the given date the offer stands cancelled. please advice.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

01 October 2014 If the cheque is not en cashed issue stop pay instructions to the bank and not to join the company.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2014 thanks seetharaman.. but can the company take legal actions if make stop payments?

Upgrade to CAclubindia Pro. Subscribe Now!

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

01 October 2014 no before issuing stop payment instruction to bank it is better to inform co a and then issue stop instruiction to bank

Message likes : 1 times

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

01 October 2014 Company can not take any legal action as no payment is legally due to the company.

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

01 October 2014 however, please note that section 139 of the NI act presumes that the cheque was issued against consideration/liability. So if the Company decides to sue, you shall have to prove in court that there was no liability....

you may refer to SC judgment delivered by two for Chief Justices of India in the case of Rangappa... Appellant Versus Sri Mohan ... Respondent [SLP (Crl.) No. 407 of 2006]CRIMINAL APPEAL NO. 1020 OF 2010

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

07 October 2014 Thanks everyone for your advice. It is really helpful.

Regards