Contract Penalty Cluase for new employees

A company just recently hired me. part of its employment contract includes a penalty clause "that In the event that after the execution of this contract, you fail to commence work or report to the company on the effectivity date of this contract, you shall be liable to the company for liquidated damages equivalent to the sum of the following one month salary fees made payable to third parties which rendered the search and recruitment". My current company countered me by promoting and increasing my package. I decided to stay with my current company. Can the other company really effect the penalty clause? Thanks in advance.

in my opinion, yes, but they will have to file a case against you to collect