Upgrad LLM

guarantor to a bond by collegue

I am retired professor. While on job, I stood as one of the two guarantors for my colleague who signed a bond with Institute for higher study leave. Afterwards he left the job. Institute issued notice to him to pay the bond amount. He refused as he was not given any salary during study leave period. The Institute has filed a case against him in Civil Court more than two years back. Forget about verdict, even issue is not framed till today.

Now institute has sent me a letter threatening that unlesss I or said colleage deposits the bond amount, my full and final payments will not be done. I have to get gratuity, Group Scheme Insurance Claim etc. Gratuity case is in Appeal.

Can Institute threat me of not processing the full and final payment unless I pay bond amount when the matter is sub-judice? Is it comparable to the Contempt of Court to demand the bond amount from guarantor before the verdict? Can Institute approach High Court or Supreme Court to stop payment of Gratuity? Can Institute recover bond amount from payable gratuity before the verdict?


Your query has been discussed in old thread initiated by you at:



The forfeiture of Gratuity is well defined in the Payment of Gratuity Act 1972: Sec4(6)…………



And before that EVERYTHING…………………..NATURAL JUSTICE, statutory show cause notice, inquiry, opportunity of proper hearing, speaking order EVERYTHING has to be done…………………


You may go thru:







You may show the Bond, communications/notices sent to employee that signed Bond, declinature to pay,service rules pertaining to such leave, notice sent to you etc to a very able counsel for a considered opinion.




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