How Can I Close My Old Salary Account Without Alerting My Previous Employer?

Dear Seniors,

I was working with an organization for the last 8 months, but I was not satisfied. So, 4 days ago, I joined a new organization without informing my previous company.

My question is, now I want to close my previous salary account. What procedure should I follow? Do I need help from my previous company, or if I go to my bank, will they inform my previous company about this action?

Regards,
Preeti

Hi,

You can directly close the account as even though it's a salary account, it's your personal account. However, a letter should also be sent from your previous company to the bank stating that you are no longer an employee of the company.

Regards, Harshad

Dear Preeti,

What you are doing is wrong. First, inform your former employees that you are quitting. Banks are more worried about revenue and don't give a damn about your activities (as long as it is not illegal). But as a matter of decency, inform your former employees about your quitting and then close the account. Informing will also save you from unnecessary mental fear.

This is a small world, and your activity may come to haunt you later on.

Dear Ramesh & Harshad,

I can't inform my previous company that I'm leaving the job because in that case they will tell me to serve the 2-month notice period which I can't. Also, in my previous appointment letter, it was written that if I leave the job without serving the notice period, I have to pay Rs. 3 Lacs. My signed check is with them.

So, by taking this action, I want to be terminated by them, and by closing the account, I want to save my money.

Preeti

Putting yourself in a legal mess, dear. You are still on their payroll and legally contracted with them. So what you are doing now will seem like dual employment. Another thing, have you informed any of your ex-colleagues or friends about quitting? This will be the right time for them to go against you and try to look good in the eyes of the company.

Don't close your account. Maintain a minimum balance and withdraw the rest.

Dear Ramesh,

I have informed my immediate boss, and before leaving, I have transferred all my responsibilities to him. As he has been very kind to me, he has promised that he will not disclose this matter to anybody in the organization.

Okay, I will not close the account, but can I inform the bank about the check number which I have given to my company and request them not to clear that check?

Preeti

Dear Preeti,

Since you have left the company and informed your immediate boss, you need not worry and can now enjoy working in your new organization.

Your salary account will remain active as a personal account after leaving the company unless someone informs the bank to close the account. The new company can open a new account in the same bank or any other bank.

Thank you,
Satyendra

Dear Ash,

Please don't get annoyed with me. Let me tell you the whole story. My appointment letter was printed on the company letterhead. It stated that I had to serve the company for the next 30 months, but the clause requiring me to pay 3 lakh rupees in case of leaving the job was not included. This information was verbally communicated to me by the HR Manager, who instructed me to submit a signed check, which I did.

Legally, the company cannot prove that I am liable to pay 3 lakhs. Additionally, I do not require a relieving letter from them as I have already informed my current employer of this situation. I have not notified any HR personnel about this issue. My primary goal is to safeguard myself against the unauthorized use of my check by my previous employer.

Please advise me on what to do with my salary account.

Regards,
Preeti

Dear Satendra,

I want to close the account as my company has my signed check. So, I want to close the account without informing them. What action should I take?

Preeti

Dear Preeti,

By signing the cheque, you have landed in a mess. The company can go ahead, present the cheque, and get the 3 lacs or sue you in case of non-payment (or cheque bounce). Ignorance of the law is not an excuse!

Hi Preeti,

You have to settle the issue amicably with the previous employer. As rightly said by Ramesh, dishonoring a cheque (when presented) is a criminal offense and will land you in deeper troubles in future appointments.

So, if you are sure that there is no penalty clause in your appointment order for leaving before the agreed period, please post your formal resignation by registered post with an information that due to resignation, the cheque number dated for Rs. handed over to you has become null and void. Before posting this letter, you can issue instructions to your banker for a stop payment of this cheque. Otherwise, you have to settle the issue with your past employer amicably.

Dear Raman,

The problem is that if I give my resignation, I have to pay 3 lacs. That's why I can't inform them. As per the contract, if the company terminates me, they cannot present the check to the bank. However, I cannot trust my previous employer, so to save my money, I want to close the account.

So, tell me only one thing: if I go to the bank to close my salary account, will the bank inform my previous employer about this action?

Regards,
Preeti

In this case, yes, Preeti, they may inform. Who opened the account for you? Self or company?

Let us know.

Dear Preeti,

There is no law available in India that authorizes an employer to take a cheque from an employee in any case or agreement. As you mentioned that you were informed about this verbally, there is no relevance to quote it further. You can send a cheque stop request to your concerned bank, and it will be automatically stopped by the bank. So, don't worry.

Furthermore, a company does not have the legal authority to claim this cheque in the case of an employee leaving the company. Therefore, do not make it an issue and enjoy working at your new place.

If you need any more clarification, please write to me.

Thanks,
Satyendra

Preeti,
There are quite a few things I have to say on this matter.
1. Forget the legal trouble, it is absolutely unprofessional and unethical and un-courteous to leave an employer without formally resigning. They gave you a job when you needed one. They gave you a salary every month. Granted! They did not do you any favor. It was purely a business transaction. However, there is something called Business Ethics. And it is against that ethics to leave an employer without even informing.
2. You said you signed a contract for 30 months, and agreed at the time of joining that you will serve a 30 day notice period. Now, how ethical is it to not honor your own commitments? Regardless of the situation, work ethics and professionalism dictate that you honor your commitments and at the least, inform the right people your inability to honor part of the commitments (30 months stay) and give them 30 day notice to make alternative arrangements
3. As for the Rs. 300,000/- issue, if it is not in your written contract, you are not liable to pay them.
4. So, what do you do with check you have already given them for Rs. 300,000? Assuming that you have a copy of the check (or at least you made note of the check number), it is quite simple. Walk into your bank, go the cashier or the branch manager, and issue a “Stop Payment” on the check. This is a facility every bank customer has. The bank may charge a nominal fee for it (I am not sure, but you can find out). Essentially, when that check goes to your bank for clearance (encashment), the bank will see the “Stop Payment” instruction against that check and will refuse to pay the party who submitted the check. If you don't want to issue a “stop payment”, then clear your bank account of the required funds. Even if you have Rs. 299,999 in your bank account, they will not honor your Rs.300,000 check (unless you have overdraft protection etc.). Anyways, you get the idea – if your account does not have sufficient funds to clear a Rs. 300,000 check, not a penny will be taken out of your account – the check will bounce back.

There are many ways to handle the cash payment situation you are having. But running away from your employer is not one of them. It is unethical and unprofessional. Please don't do that.

Regards,
--Som G

Dear Preethi,

What you have done is absolutely 101% wrong. You should have approached your previous employer before quitting. Everywhere you are mentioning "check." It is "cheque." If you close the Bank A/c and the previous employer fills up some amount and date on the signed cheque of yours and presents the same for collection, it will return as A/C closed. But an offense under Section 138 of the N.I. Act may be filed against you. Once it is filed, you cannot take a stand that at the time of joining they forcibly took a signed cheque from you. Once the case is filed, you are finished. The court will rely only on two things: Is it your cheque? Is it your signature? That is all.

My advice to you is to explain the situation to the current employer, take leave, go to the previous employer, tender your unconditional apology, get the cheque signed by you back, or cancelled. If possible, get a proper relieving letter as well.

Regards, S. Kumarasubramanian

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Dear Ash,

Please don't get annoyed with me. Let me tell you the whole story. My appointment letter was printed on the company letterhead. It was written there that I have to serve the company for the next 30 months, but in case of leaving the job, I have to pay 3 lakh rupees, was not written there. This thing was communicated to me by the HR Manager verbally, and I was told to submit the signed cheque, and I did the same. So legally, the company cannot prove that I am liable to pay 3 lakhs. Secondly, I don't want any relieving letter from them as I have informed my current employer about this. I have not informed any HR person about this. My aim is to prevent myself from the unauthorized use of my cheque by my previous employer. So now, suggest to me what to do with my salary account.

Regards, Preeti

Hi Preeti,

Your reply is very childish. How will they terminate you? It is you who have abandoned the employment without giving any notice. They have every right to present the cheque upon notice to compensate the loss of quitting without serving notice, and then they would close the file. You have to settle the issue amicably. Your closing or retaining your bank account has no say in this. Before analyzing things, please issue a stop payment request immediately to your banker where the cheque return clause will not be applicable. Then you can think of closing your bank account.

Section 138 of the Negotiable Instruments Act is a penal provision. If a person draws a cheque on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, and the cheque is returned by the bank unpaid, either because the amount of money standing to the credit of that account is insufficient to honour the cheque or because it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence. However, with regard to "Payment stopped by the drawer," this section does not mention anything specifically.

It is noted that there are manifold reasons for the dishonor of cheques by banks, but there is a statutory mandate upon the payee under Section 13 (b) of the Negotiable Instruments Act to give a notice demanding the payment of the amount of said cheque within 15 days from the date of the information regarding the bouncing of the said cheque from the drawer of the cheque. Upon the failure of the drawer to make payment of the amount within 15 days, an offence under Section 138 is deemed to have been committed. Furthermore, the decision of the Supreme Court in Electronics Trade & Technology Development Corporation Ltd is explicit and has resolved all sorts of controversies in relation to bouncing of the cheque due to payment stopped by the drawer. The court has expressly held that if, upon issuance of the notice by the payee or the holder in due course after dishonour to the drawer demanding payment within 15 days from the date of the receipt of such a notice, the drawer does not pay the same, the statutory presumption of dishonest intention, subject to any other liability, stands satisfied.

Dear Som,

I fully agree with you except stop payment part.
Just imagine that you are her revious employer. Her signed cheque is with you. She left your organisation without completing any formalities and requirements. If you are gem of a person you may forget the issue then and there. But if you are a person of otherway around, you will definitely seriously instantly get annoyed over this and may ask any individual close to you or to the management working in the company to fillup any amount and date in the cheque and present the same to the bank for payment. Then follows the Sec 138 legal drama. No body can save her. During the trail the person may come and depose that she took loan from him and gave this cheque. Because court is going to bother only two issues. whose cheque it is? Whose signature it is? Being an advocate I have come across cases where in it is submitted by the complainant advocates against a poor tea shop owner in a rural area that he has taken a loan upto a tune of five lakh rupees on different occasions and gave a cheque at last for Rs five lakhs which got bounced. They have won such cases also. In Sec.138 cases trials courts are not asking how you have given a loan upto five lakhs to the poor guy.what is his background,,his earning capacity etc,etc.. Whose cheque it is? Whose signature it is? That is the end of it. My simple straight forward advise is that it is better for her to approach her previous employer to resolve the issue amicably.

Regards,

S.Kumarasubramanian

Preeti,

You first made a mistake by signing the check, and now you are making another mistake by not serving the notice. Please start doing the 'right' things and always think before you act; otherwise, your professional life will not be smooth.

People here have given you good advice, so try to follow it.

Regards,
Shikha

Y is the need to close the account; however, if you need to close it, you can go directly to the bank and submit an application for closing your account. You can also stop payment for the cheque. And don't worry about these small things. They can't do anything against you; they can't bind you.

Cheers!

Preeti, I must say you are yourself messing up your own case big time. What you are doing is absolutely unethical, so do not expect that you will go scot-free. By absconding, you are all the more instigating your previous employer to claim those 3 lacs from you.

It's better that you talk to your previous employer and try to settle the matter amicably.

Hello Preeti,

I guess you want to close your salary account, but as per the rules of the bank, the account will be converted to personal if your salary is not credited. Bank authorities will observe your bank account for three months. If your salary is not credited within three months, it will automatically be converted to a personal account. Once your account is converted to a personal savings account, you have no right to check without prior intimation.

One thing I would like to know: you have mentioned in the discussions that you are not worried about relieving letters, but I think it's a bad thought. It may not be required for the present company where you have joined, but I guess you will not stick to the same company for your whole lifetime. When you join a new company, what would you do?

Regards,
Ramesh
"The belief in a thing makes it happen."

Dear Preeti,

If it is your salary account, then it is a zero balance account. Please withdraw all the money and then inform your bank that the check was misplaced. Cancel this check transaction. After three months, you can close your account.

Thank you,
Prema

Hi Navanju and Premasanju,

I request that you both read today's newspapers on stop payment of a check or closure of an account without the payment being made. There has been a court ruling that the affected party can proceed legally against you. Enough has been said to Preeti, and hopefully, she will be making the right decision in this regard.

Let's, for a moment, put ourselves in the shoes of the employer and then decide whether to accept or reject what has been done. We know for sure what we will do then.

Dear Kumar,

Thanks for the information about the legal issue with bounced checks. I was not aware of that. How about putting a "stop payment"? What does the law say in that respect? I know I have issued a "stop payment" notice to State Bank Of India once in 1992. They had posted copies of that notice at every teller and on the head cashier's desk, in case the check comes for cashing.

That said, a few things to note are:

1. The first and foremost responsibility (and the right thing to do) is to formally resign, serve a notice period (I did that in my last job in India back in the early '90s, and served the notice period on leave on loss of pay), and leave the company on reasonable terms.

2. If I were the employer, I would make sure that any payback terms in the employment contract state that the payment by the employee would be due to the damages or cost incurred by the company due to the employee leaving abruptly. Then the liability will be equally spread on both parties.

3. Any verbal promises made by anyone outside the written/signed-by-both-parties contract would not hold up in court. I am sure you are already aware of that.

The problem remains regarding the signed check which authorizes the payee to encash it at any time. So, how can this issue be legally resolved? What does the law say?

Thanks,
--Som G

Dear Preeti,

Don't worry about this matter. You simply need to send a registered resignation letter to your previous employer and stop the payment of the signed cheque from the bank. It's very easy to do so. You are legally safe as the communication was verbal for the 3 lakh payment.

So be happy and enjoy your current job... nobody can change fate.

Dear Taz,

The best possible solution!!! You have won my admiration. We got to help the lady being exploited by a rogue company. A Rs. 3 lakh cheque being taken at the beginning of employment without any demand note/receipt or any record in writing!!!!

It is amusing to see people talk of ethics with respect to this company.

Dear Taz, did you ever discuss and argue the Bible with the Devil??? It shows their maturity and the height of ivory castle in which they live - eating lotus!!! My humble reverence to my star friends.

"Why are you making Preeti more nervous? Take this matter somewhat seriously and don't be afraid of the company. If you don't wish to give notice period, tell the company some reason. You see, make yourself so innocent like a dog that the HR themselves will make you resign. You should have asked me earlier only, dear, regarding this. Whenever you get a new job, you should not tell anyone in the old office. If you know there might be a problem in your notice period, you should change your attitude in the office, be short-tempered, and suddenly take one week leave. Tell some nonsense reason, someone sick, or you yourself sick urgent personal work. In the office, in between, act as if you received a phone call and tell your boss that you are going home. If your boss tells that a meeting is already scheduled, tell the boss that sorry, I can't stay, I have urgent personal work and the phone came from so and so. So ultimately, your boss will report to HR, and when HR counsels, tell HR innocently that you're facing a huge personal problem and HR should cooperate by giving you 2 months leave with pay. Ok, now any HR on hearing this will themselves tell you to resign so matter CLEARED, ok Tata take care and enjoy life."

Dear S. Kumarasubramanian, Azfar, Satendra_ctech,

Thanks for your wonderful legally-compliant advice.

Thanks for being so objective in your assessment of the situation - for having a "scientific temper," which does not give in to established bias and prejudices, and goes after the truth only.

I would be failing in my duty as a human being and also as a humanistic HR person if I do not praise your efforts in bringing relief to an unknown exploited female employee.

Regards.

Dear Preeti,

You have received good advice from outstanding HR professionals in the true sense.

IMMEDIATELY issue a "STOP PAYMENT" advice with reference to the CHEQUE NUMBER to your bank through Customer Care, Net-Banking, or personally. Rs. 100 or 200 will be charged to your account for this service.

Do as advised by Taz. Whatever you do, remember that no company can bind you for a long duration or by taking a signed (blank and undated) cheque of Rs. 3 lakhs. No such agreement or contract can stand up to the scrutiny of the Law. It's absolutely illegal.

If later, the company may take the plea that you had been given a loan, etc., but still, they will have a tough time proving it in a civil court with your lawyer cross-examining the witnesses and evidence. (The courts are not blind!)

A salary account with 'zero balance' may incur charges if a certain average balance is not maintained. Maintain that minimum amount; the rest is up to you whether you want to keep it, close it, or convert it to a normal savings account.

The bank account is in your name and is legally yours. In a corporate account, the "Know Your Customer" norms are fulfilled by the Company, and the banks extend certain benefits such as:

- zero balance,
- rebate in demand draft fees,
- additional number of withdrawal facilities, etc.

The company has no lien or control over it.

Don't let people make you feel guilty on account of ethics. One need not be "ethical" on "unethical terms" or with "unethical parties." It is good that you are getting away from such an exploitative relationship. Ask your friends some personal ethics questions like "would they continue in an exploitative relationship (like marriage, which is supposed to have a COMMITMENT of a lifetime), if they know the other party is cheating, committing infractions compulsively?"

What you are doing/have done is right; only you have to learn how to do it in a better way, rather than causing miseries to yourself. I hope my post enlightens you and cheers you up. Best wishes.

Warm regards.

So, if I am reading Taz and Raj Kumar correctly, the company strong-armed the employee and asked to post a bond, so now the employee must treat them badly. In other words, if a dog bites us on the rear end, we should bite the dog's rear! That begs the question, what is the difference? What makes us better as human beings?

Yes, it was unethical for the company to squeeze a distressed employee. No questions! No arguments against it!

If you ask the company, they would blame such employees who bring them business losses and say it is for their protection. This is a never-ending cycle. Employers treat employees badly because of some employees treating their employers badly. The employees treat their current employers badly because some employer in the past treated them badly. This is never going to end!!

At some point, someone has to take a stand and say, "I am going to be a better person and a better company!" From a company's standpoint, they must allow their potential/new employees to be ethically and morally correct towards their soon-to-be ex-employers (at the time of hiring). "I am afraid I will lose my new job offer if I don't join them when they ask me. So, I will dump my previous employer mid-stream!". What then is the guarantee for the new employer that this person they are hiring now will not treat them the same in the future?

"If I tell my employer that I am going to a different company, my current employer may influence my new employer and destroy my new job and career." Why such a lack of trust? What are companies doing to their employees, and what are they gaining by fostering an environment of distrust between employee and employer? I don't get it! Who cares? "If not you, I will find another even better employee. It's not the end of the world for my company," or "If not you, I will find another better employer. It is not the end of the world for me, and you are not the only employer in the world." But as long as we are together, let's be loyal to each other and have better relations. When we do part (none of us are married to our jobs, and even real-life marriages are not forever these days), we will part on friendly terms because we want to have a good feeling about each other when we part!

Talking about ideal situations, the real solution to this is a change in the attitudes of employees and employers - better business practices, ethical and reasonable conduct towards employees fostering the same in return. Employees treat their employers well in an ethical and reasonable manner, and they receive the same treatment in return!

- SG

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"Why are you making Preeti more nervous?

Look at me.

I joined a company in 2006 and left in 2007. For my salary, the company had opened an HDFC account for me; it was a corporate salary account. After March 2007, I did not receive any salary from the company, so HDFC did not close my account. I used to deposit, withdraw my other salary and savings, and also got a premium credit card from HDFC, all at the cost of my earlier company. But HDFC never got worried about me despite my salary being stopped. But in your case, you did some 'lafda' and gave a 3 lakh cheque to..."

Hi Preeti,

I have read the whole story, and I would like to provide some tips pointwise:

1. A salary account is a savings account that can be operated with zero balance as it is a kind of agreement between the company and the bank. It belongs to you entirely, and you can close it anytime by simply informing the bank of your decision.

2. Since you had given a cheque to your previous employer, it could be used against you for cheque dishonour, potentially causing trouble. If possible, please write a letter (preferably sent via registered post to your office) stating that as there was no condition for the payment of Rs 3 lakhs in the terms of appointment, you are not liable for any such amount. Therefore, you are informing the bank to cancel the cheque and stop payment.

3. I believe that human life is above all laws; even the police cannot torture a criminal. I don't think you need to worry about this, but if you feel otherwise, I would suggest writing a resignation letter stating your inability to continue services and requesting them to process your F&F and clear your account.

4. Additionally, if there is a written clause in the appointment letter stating '30 days notice or payment,' then you are required to serve the notice period or pay the company an amount equivalent to the basic salary.

Please let me know if any further questions arise.

Sant

Hi Preeti,

You still have not submitted your resignation, so the company may consider you an absconding employee. Therefore, it does not matter if you close your bank account. They have the right to sue you.

Hi,
You can close your salary account by informing the bank. However, my advice is to also inform your company about your decision to leave. Since you already have a job in hand, there is nothing to worry about.

I don't know why you are hesitating to submit your resignation and leave the job. If your current employer asks for your previous experience, what will you do? It is very bad on your part to leave the organization without submitting a resignation. Every employee has to follow some basic rules. They won't kill you if you inform them about your exit.

When it comes to the salary account, you need not worry about it. If you want to continue the account, you can do so; otherwise, you can approach the bank manager and close your account.

Preethi,

The reason for you leaving the job is due to getting another offer?

Chal leave it. In your case (Don't want to serve the notice period, Can't pay the amount, Can't inform the company, etc.), you shall leave the account by itself. You shall be levied a penalty for the minimum balance, but if you are not going to transact in that account, then it won't affect you much.

Issuing a "Stop Payment" will help but not completely. Anyhow, if the company wants to take you for a ride, they can.

You should have informed the new company about the notice period and should have served the notice period. That would have shown your act of professionalism.

Anyway, what I can advise you is to leave the account as it is (if you are not going to use it). And inform the past company that you are not well, or met with an accident, etc., and your parents have taken you to your native, etc., things like that.

Remember, your past company experience certificate will be useful not only in this company but also in any other company you will be working in the future.

• Whether the bank account is closed or a 'stop payment' of the cheque is done, or less than Rs. 3 lakhs balance is kept in the account, the cheque is going to bounce if presented by the employer.

• In case the employer decides to approach the court for a bouncing cheque, I feel the employer is not likely to succeed. According to my limited knowledge of cases under Section 138 of the Negotiable Instruments Act, the employer will also have to prove in court that the employee owes Rs. 3 lakhs to the employer and the bounced cheque was towards that particular debt. In the absence of a formal written agreement, it is very difficult to prove, and the employer's case is very weak. But this legal process will surely prove a point to some extent and will cause a lot of trouble and inconvenience to the employee. It may well serve as a deterrent for other employees.

This case also raises many more questions, possibilities, ifs, and buts:

• Will the employer present the cheque? It is a million-dollar question. There is no formal written agreement or bond. The amount involved is not small. It appears that, just to keep some kind of psychological pressure, a cheque of Rs. 3 lakhs is taken from the employee. But is the employee serious? Will they actually present the cheque for payment?

• Assuming that it was a formal written agreement/bond, was the employer fair while deciding the penalty of 3 lakhs in case of a breach of contract? Was this agreement one-sided and unfair to the employee? Will it stand the scrutiny of the law?

• Will the employer pursue the matter further under the Negotiable Instruments Act after the cheque is bounced, knowing well that there is no formal written agreement/bond.

Thanks & Regards

Dear Preeti,

Please advise the banker to stop payment on the cheque that was lost by you. Kindly provide the details of the cheque that was given to your HR person.

All the best

Don't close your salary account. Your previous employer is holding your salary because of your absences. Provide your account number to your current employer and deposit your salary into the same account.

Preeti,

The account gets automatically converted into a Savings Account if the bank does not find any salary deposit from your employer within a span of three months.

So, you don't need to approach anyone. You can continue using the account even after leaving your last employment. However, for that, you need to maintain a certain balance amount as per the specific bank regulations.

Bharat :)

Hi Preeti,

I think you are mentally disturbed with this issue, so it's better to speak with your previous company. As one gentleman said, giving a stop payment is also a solution, as compensation is not mentioned in your offer letter. To keep your mind calm, speak with the previous employer and get things clarified. This will help you overcome any guilty feelings in the future. Also, in the future, if you plan to quit the company, please inform them. Just as you wouldn't join a company without an offer letter, similarly, before quitting, inform them. This reflects your character qualities. Imagine yourself as an employer and act accordingly.

Thanks,
Vishwa

Dear Preeti,

I have checked your message and have come to the conclusion that you must be facing some problems in your previous company, which is why you have decided to leave. However, you need not worry about facing legal action because at the time of your appointment, you may have felt compelled to agree to certain terms due to the necessity of getting the job. In such cases, agreements made under pressure are not legally binding as they violate the principle of free consent.

You are not obligated to serve the company if you have been unduly pressured or forced to take on responsibilities against your will. Regarding the closure of your bank account, you have the right to do so without requiring confirmation from your previous employer. Additionally, you can report the loss of your check to the bank and request a stop payment in case it has been presented for payment.

If you still need further assistance, please feel free to reach out.

Best regards,
[Your Name]

Kindly go through the Bombay High Court ruling on Section 138 of the Negotiable Instruments Act which was published in yesterday's Times of India. It is related to Stop Payment instructions. As per that ruling, stop payment instructions attract an offense under Section 138 of the N.I. Act. The only way to resolve the issue is to properly approach the person to whom you have given the signed cheque and request him to return that cheque after satisfying his legal dues if any. There is no other way. Alternatively, at the time of handing over the cheque, you should have obtained a letter from them stating that they are requesting this blank cheque duly signed from you as security only. There is no way you can win legally without these documents. They may be entirely at fault for cheating you in this manner. What should be done? Today's law under Section 138 of the N.I. Act is clear. It is advisable not to give any blank cheque to anyone for any reason in the future. That is the only solution.

Regards,
Kumar

Dear Preeti,

It seems you were in a very confusing condition at the time of your entry into your old company. You mentioned that there was no authorization letter which included the matter of a 3-lac payment to your employer in the case of your resignation without information.

The issue can be clarified if you provide an authorization letter to the bank people to stop the clearance of the cheque you had issued to your old employer. At the same time, you should obtain an acknowledgment signature with a bank seal from the bank people to confirm that they have received the letter from you. Keep a copy for your future reference. The letter should be given to the concerned Operations Manager of the bank, and his signature should be included on the copy that you keep.

If you wish to close your account, simply close the account at that bank, and you will not encounter any further problems with your old employer.

Best of luck.

Thanks & Regards,
Nandu,
HR Officer.

Hi Preeti,

Please forget the past and think about your current job as you have already committed a mistake by not informing your current employer, which I advise you not to do in the future. I have seen several instances in the past where a new company employee will have some connection with the old company where you previously worked, and they will come to know that you have left without proper notice. I even had to terminate a senior manager because I discovered that an employee had connections with the company where our manager worked.

It seems like your previous employer has some complicated relieving procedures. Let's not dwell on this any longer, and I wish you the best of luck in your new job!

Regards,
Madhu
HR Manager
Email: madhulooks@gmail.com
Phone: 9176638999, 9884173041

Dear Preeti,

I have gone through your issue and suggestions given by our colleagues. When you joined the service of your previous employer's organization, you voluntarily entered an agreement with them agreeing to serve for a minimum period of 30 months. Generally, in every agreement, there shall be a provision for the recovery of compensation on failure to perform the terms and conditions stipulated therein by any party.

In the present case, you have not informed anybody whether that clause is there or not in your agreement. If so, what are the contents? In general, if the employer incurs an expenditure to train a fresh candidate to meet the future manpower requirements of the organization, he can take an agreement from such a trainee. On the failure of the trainee to fulfill his obligations as per the agreement, the employer has the right to recover the amount spent on the trainee towards his stipend, facilities provided, such as food in the canteen at subsidiary rates, welfare expenses incurred, and recruitment expenses, etc.

Without giving any training or incurring any expenses, if an employer makes the new employee sign an agreement forcibly, it is not valid. Claiming Rs 3 lakhs is not a joke, and they have to show evidence of the grounds on which they have incurred expenses on your account or in what way they have sustained losses due to your actions.

Legally, it is not justified on the part of your employer to claim a compensation amount of Rs 3 lakhs, and at the same time, we cannot support your act of running away from your previous employer without informing him, as it amounts to a breach of trust.

I personally feel that it is better to settle your issue with your previous employer amicably. For this, you should go and inform him under what circumstances you left their organization and politely ask for an excuse. Then hand over the resignation with a request to accept the same and relieve you from their services with immediate effect. Generally, if you pay one month's salary in lieu of notice, your employer will have no option but to accept the same. Thereafter, you can ask for the return of the cheque taken at the time of joining.

If they are reluctant to accept your resignation or release you from their services and return your cheque, then tell them to face legal consequences. It is a settled law that taking a blank cheque towards compensation by an employer is a crime and can be proved in court proceedings.

Instead of going through the legal procedure, you have made your case very complicated. At least from now on, you should meet your previous company's MD and try to convince him to settle your account amicably. Running away from your liability will not provide any remedy. If your employer presents a blank cheque filled with some amount, even if it is for Rs 10,000, and if it is dishonored due to insufficient funds in your account, it is considered a crime under the Negotiable Instruments Act. Subsequently, by giving you notice, your previous employer has the right to proceed legally against you under the CrPC.

I believe you can understand the legal complications associated with signing agreements and providing blank cheques to employers in any organization.

Regards,

NVRao
Hyderabad

Preeti, don't get panicked unnecessarily. Forget about your salary account and your old company. People don't have that much time to run behind you and courts. If you are reading this, it means you are in a very safe zone. Just live happily without any tensions. Just be happy :) Take this as lessons learned and never ever repeat it. Take care, all the best. :)

Dear all,

If the employer decides to utilize the blank signed cheque, there are ways and means of doing it. He is not a fool to say that a certain person has given the cheque at the time of joining the organization as security. He can definitely create a believable/acceptable story that suits him, safeguards him, and complies with the law.

It is always better to settle the issue amicably with the employer, especially in cases where the blank signed cheques are in the possession of the employer. The same applies when original educational certificates are taken as a safety measure by the employer.

If anything is documented in writing, you are safe; otherwise, you are at risk. Not all employers are honest.

Regards,
S. Kumarasubramanian

First things first. It is not proper to leave the company without information. That is against ethics; it is not good for the previous company nor the present company. It is against professional ethics. People will come to know today or tomorrow, and you will lose your integrity. First, go to the old company, resign, or if you can't go, send a resignation letter. Inform the present employer about what has happened. Changing accounts and all other things are secondary. Wish you the best of luck.

Nagaraj
Email: nagaraj1946@gmail.com

Dear Preeti,

If the Rs 3 lakh is verbally told to you, then the company should not take any legal action against you. You have to put up a stop payment request to your bank. But one thing I don't understand is why you issued a check of 3 lakh for the job.

9th July '10

Hi Preeti,

Has the problem been solved? In the entire discussion, it is not clear whether you gave a blank cheque with or without the payee's name, whether it is dated or not. Any cheque after 6 months becomes stale from the date of the cheque, and thereafter, it cannot be presented to the bank. So, consider these points. Also, it would be better if everyone mentions the date of their post so that others can know how old or new the matter is.

Harrythegreat
9th July 2010

Dear Ms. Verma,

I understand that you have signed a cheque without a date. If the company presents the cheque to the bank, then the bank has to pay the mentioned amount. If it is dishonored, then you are liable under Sec. 132 of the Negotiable Instrument Act, a very strict regulation.

You have made a significant mistake, and repeating it could have serious consequences.

Regards,
Shish Uniyal

Mr. Harrythegreat,

You have woken up very late. This is about a one-year-old thread. Please go through it carefully. Posting date appears by default in each and every post on the left-hand corner. Please check.

Dear seniors, please help me out. I worked in a company for more than a year in a different state. Due to my father's health, I had to go back to my native place (state). My previous employer did not accept this, and we had a small conflict there. After a discussion, they mentioned that the HR manager would provide me with a relieving letter. However, later on, I discovered that I was terminated from the company. When I asked for the experience letter and the relieving letter, they refused to provide them. That cunning manager has ruined my life.

Now, after a long period of struggle and hard work, I am about to join a new company in my hometown/state. My concern is regarding my previous PF account linked to my PAN card by the previous company. Would there be any issues if my new company creates a new salary account in the same bank? Can they access my previous employment details using the PAN card or PF account information? If so, can I close the PF account or opt for a new PAN card? Is there a solution to this problem? I do not want my current employer to know about the details of my previous company.

When I submit my PAN card details and they attempt to open a new PF account, will they discover that I already had a PF account linked to my PAN card? If so, how can I resolve this issue? Can I change my PAN card or close it to obtain a new one? How can I close the PF account? What about my bank account? Should I close it? Please assist me as this answer may impact my career. I would be extremely grateful if anyone could help me overcome this issue. Thanks in advance.

You can close your bank account and open a new account with the new company for salary purposes.

For closing your PF account, visit the PF office where your account is opened and submit the necessary forms duly filled in for the closure of the PF account.

Your PAN number cannot be changed.

Your employer will not come to know about your other bank accounts just by your PAN card.