Ram Gopal 23 July 2018

Prior intimation for upsc post and service bond transfer

I have selected through the UPSC for a Group A post under General Central Service Cadre. I have informed in writing to my present employer (An Autonomous Body, under GOI) in all stages of application to interview to selection. But, when I ask for a release to join new post, they denied as I have not applied through proper channel and I have a service bond for 3 yrs. what to do now?

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Raghav Arora 24 July 2018

Hi! Thanks for the question!

According to my research - As per section 27 of the Indian Contract act, bonding agreements on a profession are not enforceable.

Section 27 in The Indian Contract Act, 1872

Agreement in restraint of trade, void.—Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void. —Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void." Exception 1.—Saving of agreement not to carry on business of which goodwill is sold.—One who sells the goodwill of a business may agree with the buyer to refrain from carrying on a similar business, within specified local limits, so long as the buyer, or any person deriving title to the goodwill from him, carries on a like business therein, provided that such limits appear to the Court reasonable, regard being had to the nature of the business.

However, when you sign a contract and enter into one, the company can pose difficulties for you in the future jobs and the things may get fussy. There have been cases where people left companies/firms(Even private firms) where they had signed contracts to pay back a certain sum if they wanted to drop the job in middle of the stipulated course, or else they could not leave. They sent proper letters through proper channels and even agreed to pay the money that the firm claimed, but still got notices from companies. In reply, the person issued legal notices and demanded reason and proper synopsis of the firm's undue request. The employee finally got rid of the company as they did not have much reeason and base to fight with.

So this may pose threats to you but many a times these are just loose threats, however, you should maintain your words if you have signed a contract.You have to make a choice. First try issuing legal notice and demanding reason. If they let you go, what's better?

Good Luck!