Employee Resigning In Breach Of Service Bond Cannot Force Employer To Issue Relieving Letter Or Experience Certificate: Bombay High Court

The Bombay High Court has held that an employee who resigns in breach of a service bond cannot insist that the employer must issue a relieving letter or experience certificate. The Court observed that when resignation is tendered contrary to contractual obligations under a valid service bond, the employer is justified in not accepting the resignation and consequently cannot be compelled to issue relieving or service certificates.Justice Sandeep V. Marne was hearing a writ petition filed by an aviation company challenging an interlocutory order passed by the Industrial Court directing it to issue a relieving letter and service certificate to the respondent employee. The respondent had executed an agreement undertaking to serve the petitioner for a period of three years after completion of the training. The respondent resigned before completion of the bond period. The petitioner did not issue a relieving letter or experience certificate on the grounds that the respondent had breached the agreement. The Court noted that the respondent had admittedly undergone training and had himself stated in his resignation email that the company had given him an opportunity to become an Aircraft Maintenance Engineer. The Court further noted admissions made by the respondent regarding undergoing online training for Boeing B777 aircraft through American Airlines. It observed that the respondent had upgraded himself from the position of Aircraft Maintenance Technician to Aircraft Maintenance Engineer owing to the training imparted through the petitioner.The Court observed that breach of the agreement would undoubtedly give rise to a cause of action for recovery of liquidated damages and held that merely because the employer had not yet initiated proceedings for recovery of damages, it could not be inferred that the employee stood relieved of his contractual obligations. The Court further observed that the respondent had taken the risk of leaving employment before completing the mandatory service period and could not insist that the employer must assist him in securing alternate employment by issuing certificates of service. It held that a trained employee who has acted in breach of contract cannot compel the employer to cooperate in securing employment with another employer. “A trained employee, who has acted in breach of the contract, cannot insist that the employer must cooperate and assist him/her in securing employment with another employer. Respondent cannot upgrade himself from the position of 'Technician' to that of 'Engineer' specialized in respect of Boeing B777 aircraft on the strength of training given by the Petitioner and insist that the Petitioner must help him in securing a new job with the rival employer,” the Court observed.The Court also observed that compelling issuance of such certificates in these circumstances could encourage unhealthy competition in the aviation sector by enabling employers to poach trained engineers from rival companies.Holding that the Industrial Court had erred in granting final relief at the interim stage, the Court set aside the impugned order directing the issuance of a relieving letter and service certificate. Accordingly, the writ petition was allowed.Case Title: Bharat Aviation Pvt. Ltd. & Anr. v. Rahul Sudhindra Soni [Writ Petition No. 334 of 2026]Citation: 2026 LiveLaw (Bom) 238Click Here To Read/Download Order

Employee Resigning In Breach Of Service Bond Cannot Force Employer To Issue Relieving Letter Or Experience Certificate: Bombay High Court

Saksham Vaishya

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