You are here:

Indian Law/service bond transfer


I have been working with an autonomous PSU as Assistant Manager (HR) since dec 2010, subsequently i got selected in two of the reputed PSUs of India. while applying for the above to PSUs i had applied to my present employer for NOC but i was not granted saying that during bond period NOC cant be granted. Now, on my selection i am asking for the bond transfer for which my present employer is reluctant and also talking about my not applying through proper channel. But Sir, when i have not been granted NOC, how would i apply through proper channel. Please help me. I am towards the end of my notice period of three months and will soon be asked to pay the bond to get a release letter..

ANSWER: It is fully at the discretion of your employer to allow NOC for better prospects though as per Govt. guidelines PSU employees should normally be allowed to move from one PSU to another to facilitate free mobility.Further, in order to motivate such movement,Govt. has allowed coninuity in service without any break and transfer of retirement benefits to the transfere fompany provided the application was forwarded through proper channel.Further, normally Bond have no legal validity, since it is a violation of Article 19 of the Constitution,which guarantees Fundamental Right to all citizens to carry on any profession,trade or business.All agreements in restraint of profession are also void U/s 27 of the Indian Contract Act.
Accordingly,you may serve a legal notice asking them to issue the release order immediately and simultaneously lodge a complaint before the Grievance officer of the concerned Administrative Dept.for not issuing the NoC/Release order inspite of Govt. Guideline in this regard.
Please take above actions through a competent lawyer to stregthen your case.

---------- FOLLOW-UP ----------

Thank you for your prompt reply, but u said that the application shd hv been thru proper channel.In my case i was not granted permission for NOC while appearing for the interview so the question can arise that my application ws not through proper, hw do i counter that.

The Govt. of India has  issued, from time to time,  many guidelines to the affect that the forwarding of applications should be the rule rather than an exception. Further, it had also issued instructions where applications of a Government Servant for appointment / employment elsewhere should not be considered or forwarded viz. if he is under suspension, disciplinary proceeding pending against him or sanction for prosecution had been accorded or charge sheet had been filed in Criminal Court against him.
The Delhi High Court has held in the case of  American Express Bank Ltd. vs. Ms. Priya Puri, 2006 that rights of an employee to seek and search better employment are not to be curbed even on the ground that he or she has got some training or even confidential data of the employer.It has also emphasized through its various Administrative Instructions about the importance of forwarding the applications of employees for outside employment for their career advancement and the same is to be followed as a matter of rule except in cases where they can be with held in public interest.
Non-forwarding of applications may be treated violation of Article 21 and also Article 23 by treating such acts as Forced Labour on the reason that such acts are inhibiting mobility of Govt. Employees amongst Govt.
In view of the above,I am of the view that you have a strong case to fight.
Since, your your new employer has not insisted for "NoC" at the time of interview, you can join after obtaining release order from your existing employer.However, in case ,anybody challenges your appointment on the ground that your selection was invalid because you did not produce NoC at the time of interview, it may creat legal problem for you.
Since your career is going to be affected,I suggested making of a complaint before the Grievance Officer but in this regard your apprehension is also correct.
However,you can seek information for refusal to give NoC from your present Dept. under the RTI Act and then take appropriate action in the matter in consultation with a suitable lawyer.Meanwhile seek extension of joining time by atleast two more months from the new Govt. Dept.

Indian Law

All Answers

Answers by Expert:

Ask Experts


Arun Kumar Maitra


Contract Law,Companies Act,Sale of Goods Act,Partnership Act,Negotiable Instument Acts,Constitution of India,Arbitration Act,Consumer Protection Act,Maternity Act,Payment of Gratuity Act,Payment of Bonus Act,Shops & Establishment Act etc.The answer to the grievance of the particular online query depends on the facts of the particular case and law applicable to it.However,my comments relating to the various queries raised through the "All Experts" should not be treated as legal advices and should not at all be relied upon.I do not accept any responsibility for them.They will only give you some ideas about the probable merits of your cases.Ultimate actions/decisions in the matter may please be taken in consultation with the Legal Experts in the relevant fields.My purpose of giving the comments is to increase my own knowledge on the subjects and share it with others.It is purely of academic interest to me. I strongly feel the more knowledge we share,the more we shall be able to learn because there is neither any age nor any end to learning.


I have experience of dealing with matters relating to holdings of board/general meetings,maintenance of statutory registers,filing of necessary returns with the RoC,obtaining licenses for import,replies to Parliament Questions,dealing with the Parliamentary Committees,appearing before various courts to defend my employers,filing affidavits/counter -affidavits,preparing written statements/re-joinder,giving advice to management on complicated legal issues,preparation,drafting and vetting of contracts etc. I have more than 35 years of experiences to deal with the Company Law and Other Commercial Laws of leading Organisations in the country both in Public as well as Private Sectors.

Member,Inst. of Chartered Accountants of India Member,Inst. of Company Secretaries of India; Member,Bar Council of India Member,All India Management Association Member,Delhi Management Association Ex. Vice-Chairman,Durgapore Chapter of the I.C.A.I. Expert ,CA Club India Expert ,Lawyers Club India Expert,AllExperts Ex. Faculty ,I.C.S.I as well as I.C.W.A of India Retd. Co. Secy. & G.M.(Law)/NFL(A Mini-Ratna A Schedule Central P.S.U.),New Delhi Ex.V.P.(Secretarial Dept.),Jaiprakash Associates Ltd. Ex. Co. Secy.,MAMC(A Govt. of India Enterprise),Durgapore



Awards and Honors
Obtained ''A'' Grade Certificate in the Parliamentary Procedure from the Secy. General of Parliament in 1994-95.It was in connection with a training course conducted by the BPE for PSU Executives.

Past/Present Clients
I am presently working as a Company Secretary in Old World Hospitality Pvt. Ltd.located in Delhi.It is engaged in Hospitality Industry.It has Units in India and abroad.It has been given the responsibility to look after operation & Management of ''India Habetat Centre'' located at Lodhi Road,New Delhi.

©2017 All rights reserved.