Supreme Court Upholds Bank’s Employee Service Bond Clause

Vijaya Bank & Anr. Vs Prashant B Narnaware (Supreme Court of India) New Delhi, India – The Supreme Court of India has overturned a High Court decision, affirming the validity of a clause in an appointment letter issued by Vijaya Bank. The clause required an employee, Prashant B Narnaware, to pay ₹2 lakhs in liquidated damages if he resigned before completing a three-year minimum service period. The High Court had previously quashed this condition, deeming it a restraint of trade and against public policy, and directed the bank to refund the amount paid by the employee. The employee, wh...