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I would like to add further to the discussion that if such would have been the case, no Ex Serviceman could join any PSU or Govt jobs after taking premature retirement from armed forces with F&F dues. So restricting an PSU employee for availing any avocation after termination would amount to discrimination.
From India, Pune
nathrao
3131

Was ex gratia paid to all those who took VRS?
When you left by VRS,how many years service did you put in?
The prior condition that if you opt for VRS and take exgratia,then you cannot get/seek employment in State Government/PSU is valid legally.
You will have to refund the ex gratis amount.
You can quote various judgements-but specific details of why judgement has come needs analysis.
I agree with learned member Shri Dhingra in his opinion.
Your current employer will take action when previous PSU writes to them.
Source of PSU finance is basically Government and rules are by and large common.

From India, Pune
Anonymous
2

Was ex gratia paid to all those who took VRS? - Yes

When you left by VRS,how many years service did you put in? - 16

The prior condition that if you opt for VRS and take exgratia,then you cannot get/seek employment in State Government/PSU is valid legally. - It is violating contract act 27 and number of supreme court decisions (no employer can restrict an employee after termination)

You will have to refund the ex gratis amount. - It is violating contract act 73 (no loss suffered by PSU 1)

You can quote various judgements-but specific details of why judgement has come needs analysis. - yes

I agree with learned member Shri Dhingra in his opinion. - fine

Your current employer will take action when previous PSU writes to them. - the rules state "dishonesty against company and within company premises" is misconduct. If the employer is allowed to initiate disciplinary action for any problem outside company, no employee will be safe (like housing loan default, credit card default, phone bill, house tax etc - which are all pertaining to Govt agencies)

Source of PSU finance is basically Government and rules are by and large common. - yes. But, any contract has to be signed as per legal provision. Any contract violating contract act is invalid and not enforceable.

From India, Salem
nathrao
3131

Well if you are so sure about legal position,all the best.
People have given opinions.
Remember PSUs also have their legal advisors and no such term or condition will be approved by the respective State Government if it violate law.
This condition of refunding ex gratis is seen in VRS offers made by various state PSUS

From India, Pune
I need Transfer letter format for sister concern company as new of employee from my company are transfer from parents company to sister concern......Request you to please send me format for that................
From India, Mumbai
Nathrao ji,

Sorry for not appearing on the site for about 50 days due to ill health on account of post-operative problems and other preoccupations. Also, I am thankful to you for agreeing with my view point.

Anyway, let the anonymous author be happy with his own contentions. As per my guess, it was not his practical or personal problem. Rather, probably as a law student, it can be his moot court problem or a regular law school essay on a particular theoretical problem with reference to the citations, he put. At Lawyers Club India, I usually avoid responding to such students' exercises, specifically of the anonymous authors, as they starts putting a lot of supplementary questions resulting in to waste of precious time of other members just to solve their own academic exercises. Here, I thought most people come with their own personal or official problems to expect some guidance in doing the things appropriately. So, I tried to solve his problem by virtue of my knowledge and experience.

Had he some real problem of his own, he would have come forward with the real situation faced by him along with the case history, other backgrounds and the present status of his case with the whole lot of the references that he subsequently brought one by one as well as his own contentions to call for opinions of other experts with practical experience. These moot court problems or the academic exercises have nothing to do with the practical aspects of law. These exercises are meant just to make mock exercises of mock courts t know how effectively, rightly or wrongly, the law students can justify their point. You would have noticed, initially he simply put an academic type of question without discussing the background of his case, circumstances and characteristics of the case, if he really would have faced such a problem.

So, let him be happy with his own contentions and try his luck practically in a real court of law with such type of his own contentions, when he becomes a qualified lawyer.

From India, Delhi
Mr. Selvan,
Thanks for showing concern with my health. I am reccovering gradually.
I shall see the link as and when I find that convenient and the comfort to sit for long time before my desktop. For the present, I can only say that the contract act is not only the base to regulate all appointment. It has to be seen as a subsidiary tool to the service rules. So far as legal aspect of the case is concerned, similarities in cases are rare and that is always dependant upon the similarities in nature, characteristics and the ground realities of the cases being compared.

From India, Delhi
I came across an article by an eminent SC lawyer, explaining in detail why an employer can not enforce ANY condition on an employee after the period of employment (after retirement, resignation, dismissal, VRS etc). It is applicable for all cases of bond, undertaking, appointment order or any other type of promise to do or not do something like not doing some business, not joining a competitor, not joining another PSU etc. This article will be very useful for many people.
From India, Salem
Attached Files (Download Requires Membership)
File Type: pdf Kami Export - Negative Covenant in Contract of Employment.pdf.pdf (141.9 KB, 52 views)

Mr. Sas,
You should not forget that the condition was imposed prior to leaving service and that agreement of the employee with his employer was sacrosanct for the purpose of service laws read with contract act. However, if you believe that article by some lawyer can render the law as null & void, nobody prohihibits you in doing so, provided you are able to convince the judge that there is no need to follow the law of land in view of such an article.

From India, Delhi
Mr. Sas,

In section 27 of Contract Act there is exception also, which the article has referred that you intended to ignore. I won't like to make it easy for you to provide you ready made answer for your academic query. I would only advise you to re-read at least the full part of paragraphs at 2nd page of the article that refers to Justice A.P.Sen judgment.

Moreover, I have already made it clear that in your case that the condition was imposed prior to leaving service and that agreement of the employee with his employer was sacrosanct for the purpose of service laws read with contract act.

However, if you believe that article by some lawyer can render the law as null & void, that is your sheer misunderstanding A judge of the case is not bound to follow the text of any such an article. I once again stress, it is not any article written by any SC lawyer based on any judgment that could render law of the land as null & void, it is the reality of situation, characteristics, circumstances, etc., attached to the case in particular, that make the law interpreted correctly in the courts of law.

From India, Delhi
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