These seven faculty members did not return to the institute after completion of their studies in violation of agreement. Thus, the institute sustained a loss of Rs.61.296 million.
According to clause 4 of the agreement deed signed with scholars, upon completion of the term of his award, he shall serve the Institute of Management Sciences, Peshawar for a period of not less than five years and they have produced two sureties that are jointly responsible and stand bound by this agreement and guarantee the scholar performs his promises/undertaking in letter and spirit.
In event of default of the 'Scholar' the sureties shall indemnify and pay to institute, the said amount in full. Similarly, as per clause-6 of the agreement deeds signed with scholars, in the event of any breach of the terms the scholars will be liable to pay on demand 5 million as liquidated damages to the Institute of Management Sciences Peshawar.