IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HONOURABLE SMT. JUSTICE RENUKA YARA WRIT PETITION No.38824 of 2025 Date: 17.02.2026 Between:

Bairu Nagaraju … Petitioner AND The State of Telangana and 5 others …Respondents

ORDER:

Heard Ms. B.Rachna Reddy, learned Senior Counsel appearing on behalf of Mr. Mohd. Baseer Riyaz, learned counsel for the petitioner, learned Government Pleader for Energy appearing for respondent No.1 and Mr. N.Sreedhar Reddy, learned Standing Counsel for respondent Nos.2 to 6.

2. Learned Senior Counsel for the petitioner submits that the petitioner was an employee of a Public Sector Undertaking TGGENCO attended Group-II examinations and was selected as an Assistant Section Officer for Group-II Services. After his selection, the petitioner sought No Objection Certification (NOC) and return of original certificates for attending verification. The said NOC was issued, but original certificates were not released. The petitioner having secured a better job as Group-II Assistant Section Officer submitted his resignation to the post of Chemist in TGGENCO w.e.f., 30.10.2025 along with the appointment order to respondent No.6, who in turn has sent the same to respondent No.4 for necessary action. Thereafter, the petitioner submitted representation dated 27.10.2025 to respondent No.2 to consider the resignation and waive the employment bond. In response, respondent Nos.2 to 6 informed that the petitioner has joined the new employer in violation of employment bond and therefore directed the petitioner to pay liquidated damages of Rs.11,83,832/- vide letter Lr.No. Dy.CCA(ERP)/SAO- II(CPRS)/AO-VI/JAO-3/P.F/D.No.125/25, dated 11.11.2025, aggrieved by the same, the present writ petition is filed.

3. Learned counsel for respondent Nos.2 to 6 opposed the relief sought by the petitioner on the ground that the petitioner has violated all the norms while securing the new employment and joining the new post without him being relived from his former post. In that connection, it is submitted that there is a procedure for transfer of employment bond when an employee of Government or a Public Sector Undertaking takes up employment in another department of the State Government or the Public Sector Undertaking and the said procedure has not been followed. Learned counsel for respondent Nos.2 to 6 submits that there is a variation in the bond period as it is mentioned in the original bond and the new bond which is showing two years of probation period.

4. Learned counsel for respondent Nos.2 to 6 referred to the judgment of the Hon’ble Supreme Court of India in the case of Vijaya Bank & ANR Vs. Prashant B Narnaware, 2025 LawSuit(SC)714 wherein it is held as follows:-

“Restrictive covenant requiring minimum service term with liquidated damages in employment contract is enforceable when reasonable, proportionate, and not opposed to public policy or fundamental rights.”

5. Learned counsel for the petitioner submits that the judgment of Vijaya Bank (Supra) is not applicable to the facts of the present case as the petitioner herein was an employee of TGGENCO, a Public Sector Undertaking and joining the State Government whereas, in the case of Vijaya Bank (Supra), the employee left the Public Sector Undertaking and joined a private institution. Therefore, there is qualitative difference between the situations of both the cases. As per G.O.Ms.No.351 dated 28.10.1995, when employees of State Government joined another Government Department or a public enterprise or Government Organization, the employment bond need not be enforced subject to condition that fresh bond is taken to ensure

that the employee serves the new employer for the balance of original bond period. This G.O. is squarely applicable to the facts of the present case and the same was held by this Court in W.P.No.8545 of 2014 dated 07.04.2014, wherein it is held as follows:-

“The respondent authorities were directed to accept the resignation of the petitioner, without