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Indian Law/Regarding Resignation

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Question
Dear Sir,
This is the first time I visited the site and asked a question.
If you have answered the same situation earlier,Can u please post it here for my reference.

Thanks in Advance Sir,

Deep Regards !!

P.S. this question is with regard to resignation in PSU bank !!

Answer
Youe Query:Dear Sir, Im a CA and have joined a PSU Bank on 18 Th of Nov 2013 through proper channels I.e, by direct recruitment with a bond period of three years and and amount of Rs.200000,which initially covers 2 years of probation. It was mentioned in the bond that in the event of leaving before serving the bond period the candidate has to pay the amount as the bank incurrs huge amount of expenditure,costs and time in training the candidate. Now I am no more interested to work in the ofc due to my personal reasons(lack of job satisfaction is also a reason). I had gone thru an article in this site saying it is not legal on the part of org to write a bond as it violative of constitution of India. If I put my papers now,can I take a stand to not to pay the amount or do i need to pay only the proportionate costs incurred I.e., no much training hasbeen given to me. Please guide !! Thanks. Deep regards !!


ANSWER:
Bonds are one sided contract executed under compulsion and it has no validity in the eye of law except in case of recovery of reasonable expenses like actual training expenses.As per section 27 of the Contract Act,all agreements in restraint of any profession are void.It also violates Article 19 of our Constitution,which guarantees freedom of professions to all individuals.Therefore,in the instant case,your ex-employer has no authority to implement the Bond unless it is for recovery of substantial actual expenses incurred in connection with your employment say for providing training abroad.
You have every right to terminate your employment contract by complying with the terminatin clause stated in it.
Based on facts of your case, court decision is likely to be in your favour.
Please take all actions in consultation with a good service lawyer.

Indian Law

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Arun Kumar Maitra

Expertise

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.

Experience

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.

Organizations
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

Publications
Nil.

Education/Credentials
M.Com;LL.B;A.C.A;A.C.S.

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.

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