P a g e  | 1 

The matter below is to be printed on a Non judicial stamp paper of INR 100/- denomination.
Candidate may procure the same from any Court/Official vendor from anywhere in the country

Suits, if any, in respect of any dispute arising out of this agreement shall be subject to
Jurisdiction of Courts in the State of West Bengalor States of the respective Subsidiary
companies of Coal India Limited only.

SERVICE AGREEMENT BOND

KNOW ALL MEN that by these presents we (1)_______________________________ s/o /

d/o Sh.______________________________ (hereinafter referred to as Management
Trainee) AND (2) Sh./Smt. __________________________ s/o / d/o
Sh.__________________________ resident of
_________________________________________________________________________
_________________________________________________________________________
________________________________________________ (hereinafter referred to as
Surety) do hereby firmly bind ourselves and our respective heirs, executors, administrators
unto Coal India Limited, Coal Bhawan, Action area-1A, New Town, Rajarhat, Kolkata 700156
, having its subsidiary companies and projects in different parts of the country (hereinafter
called Company) in terms of its bond.

WHEREAS the Management Trainee has been selected by the company vide its offer of
appointment no. __________________________________ dated _________ for imparting
training to him/her with a view to utilize his/her service in the company, which offer has been
unequivocally accepted by the Management Trainee.

AND WHEREAS in terms of clause 2.7 of the terms and conditions of appointment of
Management Trainee, the Management Trainee is required to undergo training for a period
of one year and thereafter to serve the company for a period of four years (Total 60 months)
as stipulated in the offer of appointment.

AND WHEREAS in terms of the clause 2.7 of the said terms & conditions of the
appointment, the Management Trainee and his surety are required to execute a Service
Agreement Bond on non-judicial stamp paper in favour of the Company, undertaking to
complete the training and thereafter to serve the company for a period of 4 years (Total 60
months) failing which the Management trainee and the surety shall be jointly and severally
bound unto the company in the sum of Rs. 3,00,000/- (Rupees Three Lakhs only), in terms
of this Bond.

NOW THEREFORE this BOND witnesseth as under :-

1. That the Management Trainee shall undergo the training provided by the company
for a period of one year, which may be extended at the discretion of the company
during which period the Management Trainee shall diligently, faithfully and to the best
of his/her ability undergo the training and conduct and behave himself/herself
honestly, orderly and obediently towards his/her superiors and management of the
company and will devote his/her whole time to the duties assigned to him/her by the
company and will not engage directly or indirectly in any trade, business or
occupation till the end of the period for which he/she is bound to serve the company.

(SIGNATURE) (SIGNATURE)
(SURETY) (MANAGEMENT TRAINEE)
 P a g e  | 2 

2. That the Management Trainee shall not leave the company during the prescribed
training period of one year which may be extended at the discretion of the company
or during the period of service of the company for the stipulated period of 4 years
after completion of the one year training except for reasons of continued serious ill-
health/incapacitating him/her to work provided that such ill-health has not been
brought about by his/her neglect, carelessness, design or misconduct about which
the decisions of the company shall be conclusive and binding.

3. That the Management Trainee shall promptly obey his/her superiors and comply with
their orders, instructions issued from time to time and at all times and in all respects
shall faithfully observe all the Rules and Regulations of the company.

4. That the Management Trainee shall observe secrecy and/in no way divulge or
disclose to any person or persons what-so-ever, the secrets entrusted to him/her or
coming to his/her knowledge in the course of his/her training and service with the
company either in relation to its work, business or its customers.

5. That the Management Trainee shall not commit or cause to be committed any waste,
damage or other injury to the property and/or goods of the company nor shall he/she
lend any such property or goods to any persons without the permission of the
management of the company.

6. That the Management Trainee shall not participate in political activities nor shall
become a member of political organizations.

7. That if the Management Trainee fails to complete his/her training successfully and/or
fails to serve the company for the stipulated period of 4 years thereafterand/or the
service of the Management Trainee is terminated on account of misconduct or
otherwise before completion of the stipulated period of 60 months, the Management
Trainee and the surety undertake that they shall jointly and severally compensate the
company for all the expenses incurred by it on account of and in connection with
his/her training by paying the company, a sum of Rs. 3,00,000/- (Rs. Three Lakhs
only). Further the Management Trainee shall on the termination of his/her
training/service by the company or on his/her leaving the said training/service
whenever it may happen shall account for, pay and peacefully deliver to the company
all the stocks in trade, books of accounts, documents, papers and effects then in
his/her possession and custody and belonging or relating to the company.

8. That at the end of the stipulated and extended period of training, as the case may be,
the suitability of the above Management trainee for employment in the service of the
company will be evaluated by the competent authority of the company on the basis of
his/her performance during the period of training and the decision of the competent
authority if the company in this regard shall be final and binding on Management
Trainee and surety. In case the Management Trainee, despite due opportunity to
improve himself/herself during the initial or extended period of training, fails to
complete the training successfully, he/she would be liable to reimburse to the
company the amount as detailed at para 7 above.

9. That if in the opinion of the competent authority of the company, the Management
Trainee has successfully completed the training, the Management Trainee shall be

(SIGNATURE) (SIGNATURE)
(SURETY) (MANAGEMENT TRAINEE)
 P a g e  | 3 

bound to accept the employment of the company and shall continue to be in the
employment of the company at its discretion in any subsidiary of the company or in
any department or any undertaking of the Govt. of India, for a period of 4 years
thereafter, unless his/her services are duly terminated by the company before that
period.

10.
training will be Rs. 20600/- per month in the - Rs.
46500. The Management Trainee shall also be entitled to other allowances as per

11. That the company shall have the right to suspend or dismiss the Management
Trainee for any breach on his/her part to comply with any of the terms and conditions
of the offer of appointment or this Bond or those of the trainee scheme and/or any of
the Rules and Regulations of the company in force from time to time and/or any
concealment of any disease or disability from which the Management Trainee was
suffering prior to his/her appointment; in which event, the Management Trainee and
the surety aforesaid shall jointly and severally be liable to reimburse to the company
the amount as detailed atpara 7 above. The said surety in his individual and personal
capacity hereby undertakes and guarantees to pay to the company, the amount as
detailed at para 7 above, in case the Management Trainee commits breach of any of
the terms and conditions of this Bond or the training scheme of the company. The
said surety further agrees that the company at its discretion shall be entitled to
enforce this bond against the surety as a Principal Debtor in the first instance, without
proceeding against the Management Trainee and notwithstanding any amounts
which may be payable by the company to the Management Trainee.

12. That for matters not provided for in this service agreement bond, the Management
Trainee shall be governed by the offer of appointment and Rules & Regulations of
the company in force from time to time.

13. That the company, however, may at its discretion alter, interrupt or terminate the
training in the event there are adverse reports regarding the progress of training or
health of the Management Trainee without thereby incurring any liability to the
Management Trainee.

14. That the above Management Trainee and surety further agree that if the
Management Trainee leaves the training or service of the company before the expiry
of the stipulated period of training and service thereafter (total 60 months), he/she
and the surety will not only be liable to reimburse to the company the amount as
detailed at para 7 above, but will also be required to ce notice
while on training and three months advance notice after completion of training period
s salary as the case
may be, last drawn in lieu of notice, in terms of the offer of appointment.

15. That in the event of insolvency, lunacy or death of the surety, the above bounden
Management Trainee undertakes to intimate the company of the event with
satisfactory proof thereof within 15 days of the occurrence, and shall execute a fresh
bond with a fresh surety or sureties as may be acceptable to the company, without

(SIGNATURE) (SIGNATURE)
(SURETY) (MANAGEMENT TRAINEE)
 P a g e  | 4 

prejudice to the rights of the company to proceed against the original surety or his
estate.

16. That in case the Management Trainee does not comply with the terms and conditions
contained in the offer of appointment, the Rules and Regulations of the company and
the covenants contained in this bond, the Management Trainee and his surety
undertake that they shall jointly and severally pay to the company on demand without
any demur the amount demanded by the company as detailed at para 7 above plus
an amount equivalent toone month / three month s salaryin lieu of notice period, as
the case may be, if any, as per offer of appointment applicable and any other amount
that may be due to the company on account of other payments or on other accounts,
if any.

AND UPON making such payment and satisfaction of this Clause the above written
obligation of the bond shall be void otherwise it shall remain in full force and virtue.

PROVIDED FURTHER that the liability of the said______________________

Management Trainee and_______________________ (surety) hereunder shall not
be impaired or discharged by reasons of time being granted to the Management
Trainee and/or the surety for fulfilling their obligations under this bond or by any
forbearance, act of omission or commission on the part of the company or any
person(s) authorized by it (whether with or without the consent or knowledge of the
said (surety), nor shall it be necessary for the company to sue the Management
Trainee before suing the surety for recovery of amount due hereunder.

17. That the company will make deduction of Rs. 5000/- per month for the bond period of
60 months as security deposit against the Bond amount as detailed at para 7 above,
from the monthly salary of the Management Trainee. On successful completion of the
minimum period of service of 60 months, the amount so deducted will be refunded to
the Management Trainee, with simple interest of 6% per annum.

In the event of failure on the part of the Management Trainee to serve the company
for the minimum period of 60 months, he/she will have to deposit the balance of the
bond amount as detailed at para 7 above after adjusting the security deposit so
deducted.

18. All suits in respect of any dispute arising out this service agreement bond shall be
instituted in the courts at West Bengalor States of the respective Subsidiary
companies of Coal India Limited only.

19. That the Management Trainee and surety agree that the decision of the Chairman
cum Managing Director/Director/General Manager or an officer nominated by the
Chairman cum Managing Director as to the correct interpretation of the bond, rules
and regulations of the company and as to whether the Management Trainee has or
has not observed and compiled with the obligations herein recited, shall be final and
binding.

(SIGNATURE) (SIGNATURE)
(SURETY) (MANAGEMENT TRAINEE)
 P a g e  | 5 

IN WITNESS WHEREOF the parties hereto have signed these presents on

this______day of_______ month of________year, place____________in the presence
of the following witnesses:

Signature __________________________ __________________________________

(Signature of surety) (signature of Management Trainee)
Name __________________________ Name __________________________
(IN BLOCK LETTERS) (IN BLOCK LETTERS)
Occupation ______________________ Address _________________________
Address _________________________ ________________________________
________________________________ ________________________________
PAN No _________________________

Witness 1 Witness 2
Signature ________________________ Signature ________________________
Name ___________________________ Name ___________________________
(IN BLOCK LETTERS) (IN BLOCK LETTERS)
Occupation ______________________ Occupation ______________________
Address _________________________ Address _________________________
________________________________ ________________________________
________________________________ ________________________________

________________________________ ________________________________
(Signature of surety) (Signature of Management Trainee)

Attested Attested

Signature & Seal of Gazetted Officer/Notary Signature & Seal of Gazetted

Public Officer/Notary Public

Accepted

For and on behalf of Coal India Ltd.

Name__________________________
Designation_____________________

(SIGNATURE) (SIGNATURE)
(SURETY) (MANAGEMENT TRAINEE)