Indemnity Cum Surety Bond

Updated at:January 2014
 
FREE EXCERPT

This Indemnity cum Surety Bond is executed on this..... day of..... 20....... by Shri............ S/o Shri............. Resident of....... who has been in the employment of........... hereinafter referred to as Company selected as a Trainee to be trained ·at on behalf of the Company hereinafter referred to as 'Employee' and Shri............... S/o Shri Resident of............... hereinafter referred to Surety for the Employee.

WHEREAS the Company has accepted the candidature of the Employee to send him for training with.............. (Training Company) at......... for a period of three years, the cost of which including boarding lodging will be borne by the Company and in consideration, the Company will avail the benefits of training of the Employee and as such the Employee will diligently and efficiently serve the Company for a minimum period of............. years and the salary of the Employee.

AND WHEREAS the Employee has agreed to complete the training diligently for the special period which may be curtailed or extended by the Company.

AND WHEREAS the Company for a minimum period of..... years with a condition that in case the Employee will not complete the learning or quits the job before the specified period, the Company will be entitled to recover a sum of Rs......from the Employee as well as the surety.

Now this Bond witnesseth that:

1. This bond will subsist throughout the service of the Employee with the Company and shall not be withdrawn by the said Surety for any reason whatsoever unless one calendar month's notice in writing is given of his intention to do so and till the expiry of the said notice- period and without prejudice to whatever liability that he has incurred till the expiry of the notice period. The Surety shall continue to be responsible for acts/ omissions of the Employee as stipulated hereinbefore and shall be discharged only when a letter to this effect has been issued by the Company.

2. In the event of the said Surety withdrawing or any said Surety becoming financially unsound or otherwise, the Company believes that the Surety is no longer sound because the Employee has been entrusted with higher responsibilities or otherwise, then...

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