• Bond transfer between Central govt PSU to Central govt PSU Bank

Sir,
     I have been working as an Engineer in Executive cadre in a reputed central government PSU since December 2011. When i joined I executed a bond to work for 4years worth of 2.5Lacs. 
Present i am selected for the post of Manager (Industry) in a Central government PSU Bank. My application for the above said post is forwarded through proper channel accordingly i have taken 'No Objection Certificate' also from my parent PSU.
Now the situation is my parent PSU is willing to transfer the bond but the PSU Bank is reluctant to accept transferring of bond.

I read in many websites that Bond is transferable according to the central government DPE (Dept of Public Enterprises) guide lines/rules. Last year two of my friends also got bond transfer from my parent PSU to other PSUs in which they joined.

Sir, please tell me, how can i make understand the PSU Bank HR dept that 'Provision is existed to transfer bond between two PSUs'. One more thing sir The PSU bank also having a bond which i have to give before join in Bank.

Please give some guidelines, Circulars and any other information which can make understandable HR dept,PSU Bank that 'provision is there to transfer the bond between PSUs'.

Sir, please replay at the earliest. Please corroborate with anecdotal evidences.
Thanking you sir.
Asked 2 years ago in Civil Law from Siliguri, West Bengal
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 w

Please connect following link: http://www.bankersadda.com/2012/03/enforcementtransfer-of-bond-in-psus.html
Minansu Bhadra
Advocate, Kolkata
266 Answers
23 Consultations
4.8 on 5.0
Hello,
What you have read up is correct,you have the right to get the Bond to anpther PSU or Central Goernment undertaking.
Enforcement/transfer of bond in respect of employees of Public Enterprises who leave the services of one Undertaking to join another Undertaking or Government.
----------------------
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.
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.
Ref:Enforcement/transfer of bond in respect of employees of Public Enterprises who leave the services of one Undertaking to join another Undertaking/ Government. (DPE O.M. No. 15(2)/2003-DPE(GM)/GL-57 dated 29th July, 2004)
S J Mathew
Advocate, Mumbai
1950 Answers
65 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)
Ajay Sethi
Advocate, Mumbai
23291 Answers
1220 Consultations
5.0 on 5.0
Enforcement/transfer of bond in respect of employees of Public Enterprises who leave the services of one Undertaking to join another Undertaking/ Government. (DPE O.M. No. 15(2)/2003-DPE(GM)/GL-57 dated 29th July, 2004)
 
CHAPTER II
PERSONNEL POLICIES
(c) Service Matters
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.
See 
Percept D Mark (India)Pvt. Ltd. Vs. Zaheer khan(2006)4 SC 227. B
Jeshma Mohandas KP
Advocate, Kozhikode
567 Answers
1 Consultations
3.5 on 5.0
1. The PSU bank should accept the transfer of the  bond as per official circular,

2. You join the PSU Bank and let the PSU where you are working now transfer the Bond,

3. At that ime you can persue with the PSU Bank for accepting the Bond,

. In any ase you can not loose the new job for Rs.2.5 Lakhs only.
Krishna Kishore Ganguly
Advocate, Kolkata
12123 Answers
231 Consultations
5.0 on 5.0
Dear Querist
first of all you should try to settle the matter amicably with your employer before joining the another job, if they are not ready to do as per legal policy of your employer, then send a legal notice to them and join the new job.....
Nadeem Qureshi
Advocate, New Delhi
3534 Answers
130 Consultations
4.9 on 5.0
I have already send you the circular. Check DPE O.M. No. 15(2)/2003-DPE(GM)/GL-57 dated 29th July, 2004) One thing you can do is file a writ petition in the high court seeking direction and to give direction to the PSU to follow the circular and the decision send by me.best option is this
Jeshma Mohandas KP
Advocate, Kozhikode
567 Answers
1 Consultations
3.5 on 5.0
So immediately file a writ petition in the high court against the same which is in violation of government circular and opposed to natural justice and ask the court seeking direction to give necessary direction to PSU bank with the decision send by me for further clarification opt consultation will explain you
7) Applications of Employees who have executed service bond with ONGC: -
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 to secure employment under the Central Government, a Public Enterprises or an autonomous body of the Central/State Government. However, in case of selection, the remaining period of bond period is to be served in the other PSU etc. in which he is appointed, in terms of the DPE guidelines on the subject.
8) In the event of their selection in another organisation, Employees whose applications for outside employment are forwarded or to whom ’No Objection Certificate’ is issued would be required to resign from their post, giving three months’/one month?s notice, as the case may be, as per the terms and conditions of their appointment. However, the Competent Authority at its discretion, may agree to adjust any short-fall in the notice period against the earned leave due to the concerned Employee or may require such Employee to pay a sum equivalent to the short-fall in the notice period.
9) Applications of Employees who are under suspension or against whom departmental proceedings are pending, shall not be forwarded nor they be released for any assignment, scholarship, fellowship, training, etc.
10) Employees of the Company in Group ’C’ (Class-III) & Group ’D’ (Class-IV) levels may be granted ? No Objection Certificate? for registration with the Employment Exchange.
11) Forwarding of Application of SC/ST Employees:
Applications for employment elsewhere of Employees belonging to Scheduled Caste/Scheduled Tribe shall be readily forwarded, except in very rare cases where there may be compelling grounds of interest of the Company for withholding of applications.
12) Authorities competent to forward applications:
(i) (ii)
Note:
CATEGORIES OF EMPLOYEES
Employees at the level of E-5 and below
COMPETENT AUTHORITY
Employees at the level of E-6 and above
Director (HR) in consultation with concerned Director except where person is under bond.
HR-II level (not below E-7 level) except where person is under bond.
See services rules for more details
Check this link of services rules
http://ongmazdoorsangh.org/knowledge-bank/service-rules.pdf#page9
Jeshma Mohandas KP
Advocate, Kozhikode
567 Answers
1 Consultations
3.5 on 5.0
if PNB is refusing to accept the circular you can move HC by means of WP to direct bank to accept bond transfer as per the circular issued by Govt of india
Ajay Sethi
Advocate, Mumbai
23291 Answers
1220 Consultations
5.0 on 5.0
1. Find out what reason the PSU Bank is citing for not accepting the Circular,

2. Do they think that the said circular is not applicable on PSU Bank but on PSU only,

3. Try to convince them and meet their Senior Officers.  If they still do not agree, file a Writ Petition before the high Court against the PSU Bank.
Krishna Kishore Ganguly
Advocate, Kolkata
12123 Answers
231 Consultations
5.0 on 5.0
Hello,
If the bank is refusing to follow the circular of the government  you need to approach the HC as soon as possible requesting the HC to give directions to the bank to accept the transfer of bond.
This is the only way going forward.
S J Mathew
Advocate, Mumbai
1950 Answers
65 Consultations
5.0 on 5.0
file a writ petition before HC against the PNB and get direction from the court for this, it will be better for you
Nadeem Qureshi
Advocate, New Delhi
3534 Answers
130 Consultations
4.9 on 5.0

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