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Indian Law/got terminated from a Central PSU (MAHARATNA) - Impact on future emploment - how to get relieved


QUESTION: respected sir,

i have been appointed as a trainee in a Central PSU and i have worked (training) for a period of 7 months, later due to family problems (mother has fallen ill) i did not report to the office. I have made several requests for transfer to a near by place for time being at least which were not considered. now, i have been issued an order stating my services have been terminated in the organisation w.e.f. my last working day and i was asked to pay the bond amount(as per service agreement). I have requested for the waiver of the bond amount as given the financial position of my family, it can't be afforded and they have not responded to it so far.

my questions are,
1. how to come out clean of this mess such that it doesn't affect my future employment prospects? (Iam also planning to appear for CIVIL SERVICES EXAM)

2. I have also applied for a couple of banks (both being public sector, 1 state and 1 central)by not disclosing the above employment details and given the interviews too and chances of being selected are high(applied after the date of termination of my service). can i disclose the same at the time of joining (by then i would get relieved from the earlier organisation.) Will this have any impact in future.?

3. I have also applied for a Central Govt. Gr-II post and i am about to attend the interview. how should i go ahead with this interview about my previous employment such that it doesn't affect my employment chances.?

please suggest me a way out for which i would be very grateful.


ANSWER: You were governed by the terms and conditions of engagement.Place of posting is fully at the discretion of the Management because its purely an administrative decisaion.There is no merit in challenging it.
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 for providing say external training traing abroad.
You have every right to terminate your employment contract by complying with the terminatin clause stated in it.
Your employer has every right to terminate the contact of a trainee for remaining on unautrhorised leave.However, it will be against the principle of natural justice,to terminate any such contract without first giving him an opportunity to defend.
Since their decision will affect your career,I would suggest immediate legal notice to them.You should caution them that in case your dues are not cleared within a specific date, you shall be compelled to take suitable legal action to them.Based on facts of your case, court decision is likely to be in your favour.However,if you do not mention about this employment to your prospective new employer,particularly will creat further trouble for you at the time of their police-verification about your antecedents.Moreover,there will be break-in-service.Accordingly,I would suggest that you make true and fair disclosure and at the same time file a writ before the concerned High Court.
Please take all actions in consultation with a good service lawyer.

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

QUESTION: respected sir,

Is it ok if I settle the said bond amount/dues with the organisation.??
how would they issue the relieving order (i,e. wording)and how will this entire episode have the impact on my next employment processes?

and my 2nd question is, Is it possible to disclose at the time of joining the bank (which i have not disclosed in the interview), as generally, verification is done only after joining (if i am not wrong). ?

kind regards

You have left the earlier organisation after completion of the contract.It is undersrtood they have issued the termination letter also.Therefore you are now absolutely free to apply elsewhere.There is nothing wrong even if you disclose about your last employment at the time of joining but the difficulty is that in that case,without release order from the PSU, they may not allow you to join.Further difficulty is that in case they come to know that you have not applied through proper channel,your appointment may become invalid.Now if you produce the termination letter/release order,that will creat a very bad impression about you to them.

In view of the above, the best option would be not to disclose about your previous employment.Meanwhile you issue a legal notice as suggested above.For such type of cases ,court does not take much time to issue its order.Police is not supposed to know about your last employment unless you disclose the same to your new employer.At this stage,this is the best option for you but you shall have to take  this decision at your own risk.

Please take appropriate decision by consulting a competent lawyer on service matter.

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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.

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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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