lien on fixed deposit
essycherianantony
(Querist) 10 March 2011
This query is : Resolved
As security for fulfilling employment bond period, my Company has stipulated that fixed deposit receipt in the name of the surety, and lien marked to my Company should be submitted to the Company.The Company will release this FDR when the bond period is over.
In the event of the employee abandoning the company without the permission of the company, what is the procedure to encash the amount in the fixed deposit by the company?
malipeddi jaggarao
(Expert) 11 March 2011
A discharge from the surety on the reverse of the FDR with instructions to credit amount to the Company Account or issue bankers chque/demand draft in favour of the company is required from the surety in whose the deposit stands.
RAJU O.F.,
(Expert) 11 March 2011
While noting the lien with the bank, the Company naturally would have taken signature in the back side of the FDR as discharge and for having received the amount under the deposit. Hence the company can encash the FDR, if the employee abandoned the job during the bond period.
