• Bond transfer from Central Government to State Government department

Sir, 
I am working as Junior Engineer in Southern Railway. While I joined I have executed a bond for 5 years. Now I am selected as Assistant Engineer in Tamil Nadu Public Works (PWD) Department. I have obtained No Objection Certificate from Southern Railway to attend the counselling for the post of Assistant Engineer (All other selection process including interview got completed before I joined Southern Railway). Now Southern Railway willing to transfer the bond but TN PWD reluctant to accept the bond. 

Now I wish to know whether a state government department needs to obey Department of Public Enterprises personnel policies or not.(DPE O.M. No. 15(2)/2003-DPE(GM)/GL-57 dated 29th July, 2004)

I am looking forward for your reply Sir.
Thank You.
Asked 1 year ago in Labour

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7 Answers

Yes, State Government department has to accept the NOC and the  Central Government's transfer of bond as per your statement. But, I don't know what is the reason for revocation from the state government's department. I want to see the terms and conditions of the Offer from the State Government's Job for joining the job.

Kumaresan
Advocate, Coimbatore
29 Answers

Not rated

The terms of bond whereby an employee of a Central public enterprise receiving scientific and technical training out the expenses of the Govt./Public Sector Enterprises undertakes to repay this specified amount in the event of his failure to serve the enterprise for a stipulated period after completion of his training should not be enforced against an employee who leaves service of public enterprise to secure, with proper permission, employment under the
Central Govt., a public enterprise or an autonomous body wholly or substantially owned/financed/controlled by the Central/State Govt. A fresh bond should be taken from the person concerned to ensure that he serves the new employer for the balance of the original period.

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

Enforcement/Transfer of Bond in PSU's

 

 

Government of India has has come out with the ciruclar regarding the Bond Enforcement in PSU Companies. As per the circular, if you change jobs within PSUs, within the stipulated bond periods, you are not supposed to pay the bond amount... the bond amount is just transffered from one employer to the other provided that the employers are PSUs. Details of the circular are as given below -

 

 

29. DPE/Guidelines/II(c)/29

 

 

Enforcement/transfer of bond in respect of employees of Public Enterprises who leave the services of one Undertaking to join another Undertaking/ Government.

 

 

The undersigned is directed to refer to this Department’s OMs No. BPE/GL-017/77/MAN/2(11)/75-BPE(GM-I) dated 13.6.1977 and 23.5.1981 and No. 17/20/84-GM dated 5.2.1985 on the subject mentioned above, which were deleted vide this Department’s O.M. No. 20(5)/95-DPE(GM) dated 10th December, 1997. After deletion of these guidelines, Department of Public Enterprises received references from various quarters for revival of these guidelines to enable them to regularize enforcement/ transfer of bond in the case of public sector employees joining services in Central Govt./State Govt./Autonomous Bodies. The position has been reviewed and after careful consideration, it has been decided to revive this Department’s OMs dated 13.6.1977, 23.5.1981 and 5.2.1985 with the following modifications:

 

 

(a) The bond executed by employees of the Public Enterprises, who have received scientific/technical training at the cost of Public Enterprises and have applied through proper channel during the currency of the bond join Central Govt./State Govt. services or take up employment under quasi-government organizations or any other public enterprise either on the basis of competition examinations/tests/interviews organized by those organizations or the Union Public Service Commission should not be enforced subject to the condition that a fresh bond is taken to ensure that the employee serves the new employer for the balance of the original bond period.

 

 

(b) The terms of bond whereby an employee of a Central public enterprise receiving scientific and technical training out the expenses of the Govt./Public Sector Enterprises undertakes to repay this specified amount in the event of his failure to serve the enterprise for a stipulated period after completion of his training should not be enforced against an employee who leaves service of public enterprise to secure, with proper permission, employment under the Central Govt., a public enterprise or an autonomous body wholly or substantially owned/financed/controlled by the Central/State Govt. A fresh bond should be taken from the person concerned to ensure that he serves the new employer for the balance of the original period.

 

 

(c) To ensure that the requirement of obtaining a fresh bond from a person, where necessary, is fulfilled, the enterprise with whom the employee has executed the original bond may at the time of forwarding his application write to the organization etc. under whom the employee intends to take up another appointment intimating them about the bond obligation of the individual and clarifying that in the case of his selection for the new post, his release will be subject to the condition that the new organization take from him a fresh bond binding him to serve them for the balance of the original bond period; in case he fails to serve the new department/organization etc. or leaves it before completion of the original bond period for a job where exemption from bond obligation is not available, the proportionate bond money should be realised from the individual and refunded to the first organization with whom he originally executed the bond.

 

 

2. All the administrative Ministries/Departments are requested to kindly issue necessary instructions accordingly to the public sector enterprises under their administrative control.

 

 

(DPE O.M. No. 15(2)/2003-DPE(GM)/GL-57 dated 29th July, 2004)

 

 

your bond can be transferred but it is for state govt department to accept bond transfer 

Ajay Sethi
Advocate, Mumbai
94518 Answers
7485 Consultations

5.0 on 5.0

  1. Paragraph (a) of referred memo stipulates that, any bond executed by employee of Public Enterprise on whose training he employer has incurred expenses duly joins Central Government/State Government should not be enforced provided he executes a fresh bond to serve balance period of original bond.
  2. Paragraph (b) stipulated that, an employee who undertakes to repay the expenses of training incurred should not be enforced against him if he executes a fresh bond to balance period of original bond with ne employer.
  3. Paragraph (c) only lays down modality for ensuring the new employer take a proper bond from employee joining him.

The memo nowhere speaks of any obligation of State Government to recruit such employee by accepting bond from him. There is no such compulsion on the new employer under the referred memo. But you can approach High Court of Madras or SC under writ jurisdiction seeking mandamus to State Government to appoint you as the principle of "legitimate expectation."

Ravi Shinde
Advocate, Hyderabad
4041 Answers
42 Consultations

5.0 on 5.0

Yes state govt needs to abide by the office order if any other policy promulgated by the state govt

Prashant Nayak
Advocate, Mumbai
31802 Answers
175 Consultations

4.1 on 5.0

Dear Client,

Bond can be transferred as per Department of Public Enterprises guidelines in the case of an Employee, who leaves service of the Company with proper permission.

You have to submit all the bond details of the previous employer along with valid document from previous employer. Your fresh bond will be proportionately reduced as per clarification from your previous employer.

Since the bond was issued, the concern should be between these parties only, as every government department has its own policies and guidelines.

 

Thank You.

Anik Miu
Advocate, Bangalore
8742 Answers
109 Consultations

4.7 on 5.0

The circular quoted by you needs to be studied to render proper advice. However, in general, the State Government being an independent employer may choose to accept or not accept a bond executed in favour of the Union Government, as the terms and conditions of employment vary. 

Swaminathan Neelakantan
Advocate, Coimbatore
2773 Answers
20 Consultations

4.9 on 5.0

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