Leaving before month 24 puts Rs. 2,00,000 on you, payable to the company.
shall pay to the Company a sum of Rs. 2,00,000/-
Indian Contract Act, 1872, s.74
Where a sum is named in the contract as the amount to be paid in case of breach, the party complaining of the breach is entitled, whether or not actual damage or loss is proved to have been caused thereby, to receive reasonable compensation not exceeding the amount so named.
How courts have read it
Courts distinguish a genuine pre-estimate of loss from a penalty, and in service-bond cases have looked to documented training expenditure.
Fateh Chand v. Balkishan Das · Kailash Nath Associates v. DDA
What to ask
What training expenditure does this Rs. 2,00,000 actually represent?
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