If you are stuck in such a situation, here is what to do.

Ms. Anjali, a promising final-year law student from a reputed university in Pune, was thrilled to receive an internship offer from “Innovate Corp,” a leading tech firm in Bengaluru. The offer for a two-month internship starting in July was confirmed via an official email, which she formally accepted. Relying on this confirmation, Anjali turned down another offer and booked non-refundable flight tickets and paid a deposit for a short-term rental in Bengaluru. However, just two days before her scheduled start date, she received a terse email from the company’s HR manager, Mr. Sameer Gupta, stating that her internship was cancelled due to “unforeseen budgetary adjustments.” This left Anjali not only without an internship but also facing a significant financial loss and a gap in her academic record.

Advice in such cases

• Review all Communication: Carefully go through the offer letter, your acceptance email, and any other correspondence with the company. The wording can establish whether a binding agreement was formed.
• Document Everything: Compile a record of all expenses incurred based on the internship offer. This includes travel bookings, accommodation deposits, and any other related costs.
• Maintain Professionalism: While frustrating, communicate with the company calmly and professionally. Clearly state the issue and the losses you have incurred due to the sudden cancellation.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Applicable Sections of Law

This situation primarily falls under civil law, specifically the law of contracts.

• Indian Contract Act, 1872: An official offer letter and a formal acceptance can constitute a legally binding contract. The sudden cancellation can be considered a breach of this contract. Under Section 73 of the Act, the party who suffers from a breach of contract is entitled to receive compensation for any loss or damage caused.
• Principle of Promissory Estoppel: This legal principle can be invoked if you acted upon the company’s promise (the internship offer) to your detriment (incurring costs, rejecting other offers). The company can be “estopped” or prevented from going back on its promise.

If you are the complainant

• Gather Evidence: Collect all documents, including the offer letter, acceptance email, cancellation notice, and receipts for all expenses.
• Send a Legal Notice: Through a lawyer, you can send a formal legal notice to the company. This notice will outline your grievance, the legal basis of your claim (breach of contract), and demand compensation for your financial losses and the opportunity cost.
• File a Civil Suit: If the company fails to respond or refuses to compensate you, your next step is to file a suit for recovery of damages in a civil court with the appropriate jurisdiction.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

If you are the victim

• Stay Calm and Organized: Do not panic. The first step is to methodically organize all your documents and evidence. This will form the backbone of your claim.
• Calculate Your Losses: Create a detailed list of all monetary losses. This includes direct costs like travel and accommodation, as well as potential loss of stipend, if any was promised.
• Seek Redressal: Do not hesitate to stand up for your rights. A formal offer is a professional commitment, and its arbitrary withdrawal has legal consequences.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

How the police behave in such cases

The police will not be involved in such matters. A breach of an internship or employment offer is a civil dispute, not a criminal offence. The police have no jurisdiction to register an FIR or take any action. They will rightly advise you to approach a civil court to resolve the matter.

FAQs people normally have

What evidence is required?

• The written internship offer from the company (email or letter).
• Your written acceptance of the offer.
• The communication from the company cancelling the internship.
• Proof of expenses incurred in reliance on the offer, such as flight or train tickets, and accommodation payment receipts.
• If possible, proof of other opportunities you declined because you had accepted this offer.

How long will the investigation take?

Since this is a civil matter, there is no “investigation” in the criminal sense. The process begins with sending a legal notice, which typically gives the company 15 to 30 days to respond. Many cases are resolved at this stage. If the company does not comply, you may file a civil suit. The duration of a court case can vary significantly, from several months to a few years, depending on the court’s schedule and the complexity of the case. However, the strong legal position of the aggrieved student often encourages companies to settle out of court to avoid litigation and protect their reputation.

Advocate Sudhir Rao, Supreme Court of India