HC Upholds Bank’s Recovery of ₹3L Surety from Ex-Manager

Rapid Summary

• The High Court in Bengaluru upheld an order by Vijaya bank to recover Rs 3 lakh from a former manager, Abhimanyu Kumar.
• Kumar had signed an indemnity bond agreeing to serve for a minimum of three years but left early to join the Steel Authority of India (SAIL).
• The high Court ruled that guidelines issued by the Department of Public Enterprises (DPE) do not apply to nationalized banks like Vijaya Bank.
• A division bench clarified that nationalized banks are governed by their parent ministry’s instructions,not DPE guidelines.

Indian Opinion Analysis

This ruling highlights significant distinctions in governance between public sector enterprises adn nationalized banks in India. While DPE guidelines facilitate certain employee movements within public sector enterprises, these do not extend to banking institutions, which follow different regulatory structures under the Ministry of Finance. This case emphasizes the need for clarity and adherence to specific contractual obligations within varied sectors. For employees considering transitions between sectors, understanding these nuances is crucial for compliance and legal protection.

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!HC upholds bank recovering Rs 3L surety amount from ex-manager