• Is there a way avoid paying the surety bond amount

I had joined a central government department in May, 2014. At the time of joining I was asked to sign a surety bond for 5 years. The penalty for breaking the bond was Rs 2 lac or actual salary drawn (whichever is less). 
I resigned from the post in August, 2018 as I got another job in state government i.e. I worked for 4 years & 3 months (in central government). The problem is that I had not applied through proper channel. I joined the state government in September, 2018 after submitting a resignation in central government. The competent authority verbally agreed to accept the resignation and assured me that the bond amount will be waived off. However, in the meantime he (competent authority) got retirement (my bad luck). 
Now they are sending me letters to pay the bond amount so that my resignation is accepted. They also intimated that if I didn't respond they will inform the state government about the same.
Kindly guide me whether there is a way for me to avoid paying the bond amount or otherwise.
Asked 6 months ago in Labour from Tangmarg, Jammu and Kashmir

Your fault comes in specific performance of agreement and the department can initiate legal proceedings to recover the amount due please speak to the department and try to settle down the amount so that the legal proceeding should not be started

Vimlesh Prasad Mishra
Advocate, Lucknow
5376 Answers
16 Consultations

4.9 on 5.0

You have signed surety bind for 5 years and agreed to pay Rs 2 lakhs or actual salary which ever is less


2) since you did not serve for period of 5 years and resigned within period of 5 years govt can seek to enforce the bond amount 


3) take the plea that you don’t have to pay Rs 2 lakhs but only Rs 30000  being amount payable for period of shortfall of 9 moths or so 


4) offer to pay Rs 30000 


5) bond cannot be transferred since you did not apply through proper channel 

Ajay Sethi
Advocate, Mumbai
65428 Answers
3960 Consultations

5.0 on 5.0

1) Yes, there is a way to avoid but you have to file case in the Labour Court. As the retired officer already has accepted your resignation letter and relieved you from services, so at that time nobody took any objection nor asked for bond amount as the retired officer had waived off bond amount.

Ganesh Kadam
Advocate, Pune
7095 Answers
60 Consultations

4.9 on 5.0


No, you have to pay the amount 


Swarupananda Neogi
Advocate, Kolkata
1028 Answers
2 Consultations

4.8 on 5.0

you will have to pay the entire sum of the bond to honor the agreement. 

Mohammed Mujeeb
Advocate, Hyderabad
9336 Answers
3 Consultations

4.5 on 5.0

1. The agreement in restraint of trade is void u/s 27 of the Indian Contract Act.

2. So the Bind even if voluntarily executed by you is not legally binding upon you since its terms are stifling and made even though no extraordinary expenditure was incurred for you for imparting any special training.

3. SO they can not refuse to accept your resignation merely for breaching the terms of Bind.

So rest assured on this account.

Devajyoti Barman
Advocate, Kolkata
17459 Answers
248 Consultations

5.0 on 5.0

See in this situation you can request the authority to waive the bond amount otherwise there is no way around you have to pay the same other wise it will hamper your new joining if no proper relieving letter and resignation is given.

Shubham Jhajharia
Advocate, Ahmedabad
18230 Answers
71 Consultations

5.0 on 5.0

Write a letter seeing waiver of the bond amount showing that you complete service of more then 4 years and you have worked hard if they waive same then in that case only you can get relief.

Shubham Jhajharia
Advocate, Ahmedabad
18230 Answers
71 Consultations

5.0 on 5.0

You may have to pay proportionate amount out of the bond amount.

You may make a representation to the competent authority to waive the payment being a very negligible amount.

It depends on the discretion of the authorities concerned.

T Kalaiselvan
Advocate, Vellore
55240 Answers
674 Consultations

5.0 on 5.0

They are right please negotiate with them on the ground of delay in accepting the resignation that to waive off the remaining period of bond to avoid harassment.

Koshal Kumar Vatsa
Advocate, Gurgaon
1693 Answers
1 Consultation

5.0 on 5.0

If you are abiding by the conditions of bond they cant do anything. you just follow the terms of the bond. ;et themdo whatever they want to.

Prashant Nayak
Advocate, Mumbai
11640 Answers
18 Consultations

4.8 on 5.0

Send them reply that you opted for technical resignation.

Yogendra Singh Rajawat
Advocate, Jaipur
12246 Answers
13 Consultations

4.6 on 5.0

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