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Indian Law/relieving letter from PSU bank

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QUESTION: sir,

I have resigned from A Public  sector bank without giving the bond amount.  Its a 3 year bond amounting rs. 1 lakh. Soon i will join central government(cga). I did not mention my bank job in job application form as i was not working in bank back then. My
documents verification was completed.  Now going forward will it create an issue.  My concern is that i have to continue the same NPS account which was created while i was working in bank. Please put your valuable opinion.

ANSWER: Even if you have executed a service-bond,you should not agree to pay any amount.Such type of bond is one sided contract executed under compulsion and it has no validity in the eye of law.As per section 27 of the Contract Act,all agreements in restraint of any trade,profession or business are void.It also violates Article 19 of our Constitution,which guarantees freedom of professions to all individuals.The courts in India have held in its various judgments that in the event of breach of contract by the employee, the employer shall be entitled to recover only the actual loss suffered by it.Damages are calculated as per the provisions of section 73 and 74 of the Indian Contract Act. Even if the bond stipulates payment of any penalty amount in the event of breach, it does not mean that the employer shall be entitled to receive the stipulated amount in full; the courts shall determine the reasonable amount of compensation to be paid based on the period of service rendered,terms and conditions of service etc.
References of leading case laws on the relevant matter are given below:
1 Central Inland Water Transport Corporation v Brojonath Ganguly, (1986)IILLJ171SC

2 Niranjan Shankar Golikari v The Century Spinning and Manufacturing Company Ltd, AIR 1967 SC 1098

3 Nandganj Sihori Sugar Company Ltd v Badrinath Dixit, & Ors, AIR1991 SC 1525

4.Sicpa India Limited v. Shri Manas Pratim Deb

If you have worked in a nationalised bank,then you should have applied through proper channel.Moreover,Govt. will certainly insist for release order before allowing you to join.
Moreover,it would amount to sppression of fact,if you have not disclosed the name of your previous employer.It may come to the notice of the employer during police verification.
So please take appropriate decision on the matter in consultation with a lawyer.

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

QUESTION: sir,

Actually when i filled up the form for the central government recruitment process i was not a part of the bank.  so i did not mention it.

 Does the central government ask for relieving letter in such cases. I have copy of resignation letter sent to bank and signed by manager with me. and if government wants then what's the way ouy of it.  Kindly suggest

ANSWER: Normally every employer ask for release order as a proof that you are presently not working elsewhere.

Moreover,before joining you may have to fill a declaration about your past employment.

You may keep quite and in case new employer insist for release order,you may show your resignation letter.

However,it is fully at their discretion to accept it.



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

QUESTION: sir,

If the bank goes in to file a court case., how to face it.  can you kindly provide your contact no.  or anyone who can help me out. I stay in Barrackpore, near kolkata, west bengal. looking forward for your response. thanks

Answer
Even if the bank files a case against you to recover the amount,it will not succeed unless it can proof the actual loss suffered by them.Moreover,though you have not obtained release order,you have left the bank after submitting a letter of resignation.If at any time the new employer insist for release order,you may show the copy of your resignation letter.You kindly preserve it carefully in your record.Bank cannot deny its receipt,because after getting it they are insisting you to pay the Bond amount.Moreover,they have acknowledged receipt of the same.

Even though you had already left the Bank,when you applied for the new job,you should have mentioned the particulars of your previous employer.

So I do not apprehend that Bank will go to the court.In case you go,you have to defend yourself through a service lawyer.

In future whenever,you work in a Govt./Semi-Govt. organisation,please apply through proper channel and obtain release order before leaving.

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Arun Kumar Maitra

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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.

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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.

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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

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M.Com;LL.B;A.C.A;A.C.S.

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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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