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Indian Law/NOC from PSU during BOND Period



I have joined PSU in July 2014 as MT. At that time I have given a bond to company to serve them for 3 years after training. One of the condition in bond was " During the period of training and for three years thereafter as aforesaid the TRAINEE agrees and undertakes not to seek employment anywhere else nor enter the services of any employer whatsoever". Now in July 2015 my training period got over and they have issued me a fresh offer of appointment wherein giving reference of my BOND they have written that " During your service under Bond for a period of three years from the date of your regular appointment, you will not be allowed to leave the services of the company nor will your application for outside employment be forwarded "

I have following questions:

1. Isn't it violation of GOI guideline that "NOC should be rule rather than exception" and our constitutional rights. Does my signing Bond and acceptance of above offer of appointment gives company the right not to issue NOC to me for 3 years.?

2. Is there any previous court judement regarding such cases, where employee has given bond and acceptance of Employer's arbitrary and unconstitutional T&C but court has has given relief to employee and asked employeer to give NOC.

3. What are my chances of getting relief from court if I file a case against company

Abhinav Kumar

It is fully at the discretion of your employer to grant NOC. Further,you are governed by the terms of your engagement.It is mandatory to apply through proper channel by the employees of PSUs to another Govt./semi-govt. organisation.You may also go though relevant Govt. guidelines in this regard.

During the service period,employee can enforce the Bond against the employee not to issue NOC for applying for better prospects elsewhere.

No such case law is known to me giving relief to an employee about enforcement of the Bond while he is still in employment and directing the employer to issue NOC.

As per my knowledge,your chance of getting relief through court in above matter is very remote.

However,you may consult a lawyer in this regard.

Indian Law

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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.

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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