Even in the absence of an arbitration agreement or arbitration clause in your employment agreement, it may be possible for you to negotiate with the employer. If it is convenient for you and if the employer is agreeable, you can try to convince them for payment of 60 days’ salary in lieu of not having given the two months’ notice.
If the employer company wants to file a suit for the amount of Rs. 1.50 lakh, it may have to incur expenses initially for filing of case, payment of professional fee to the lawyer, etc., and then there is no guarantee that the employer would win the case. So, it is quite possible that the employer may agree and settle for a small amount if you negotiate with them, since filing a case may not be cost-effective for them.
In the worst situation, if a suit is actually filed against you, there would be no option for you except contesting the case on merits wherein you can show your side of the story.
Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.